Quality Fender uses a standard cost system and provide E(Click the icon to view the information.) Quality Fender allocates manufacturing overhead to production based on standard direct labor hours. Quality Fender reported the following actual results overhead, $34,000; actual direct labor hours, 410. a follawing information: fenders produced, 20,000; actual variable overhead r 2018: actual number 4,420: actual fixed Read the requirements Requirement 1. Compute the overhead variances for the year: variable overthead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Begin with the variable overhead cost and efficiency variances. Selec! the required formulas, compule the variable overhead cost and eficiency variances, and identily whether each variance is favorable (FX the formula based on the data provided. Abbreviations used: AC actual cost; AQ actual quantity; FOH fixed overhead; SC slandard cost; SQ standard quantity; VOH variable overhead.) unfayorable (U), (You may noed to simply Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identily whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC actual cost; AQ actual quantity overhead: standard S0 quantity.) Formula Variance FOH cost variance FOH volume variance unfayorable, Requirement 2. Explain why the varianoes are favorable o because management spent than budgeted actual production The variable overhead cost variance is r ti because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The variable overhead efficiency variance is because management spent than the amount budgeted for fixed overhead. The fixed overhead cost variance is because mariagement allocated fixed overhead to jobs than was budgeted. The fixed overhead wolume variance is i Data Table Static budget variable overhead 2,875 23,000 Static budget fixed overhead 575 hours Static budget direct labor hours Static budget number of units 25,000 units Standard direct labor hours 0.023 hours per fender Print Done i Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Print Done