Quality Fender uses a standard cost system and provide the following information: Click the icon to view the information) Quality Fonder allocates manufacturing overhead to production based on standard direct labor hours. Quality Fender reported the following actual results for 2024: actual number of fenders produced, 20,000; actual variable overhead, $4,850; actual fixed overhead, $34,000; actual direct labor hours, 470. Read the requirements. - Data table le overhead efficiency Requirement 1 variance, fixed Begin with the and efficiency formula based standard cost $2,268 the variable overhead cost ay need to simply the fixed overhead: SC - Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $30,240 756 hours 27,000 units 0.028 hours per fonder VOH costvari VOH efficiency Now compute the volume variance AQ - actual que fixed overhead cost and s used: AC actual cost: Print Done Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (You may need to simply the formula based on the data provided. Abbreviations used: AC = actual cost: AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variante VOH cost variance (AC-SC)* AQ 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 identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance FOH cost variance FOH volume variance Renuirement ? Explain why the variancee are favorable or infavorable Get more help Next Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spont than budgeted for the actual production The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted