Quality Inc. uses a standard cost system and provides the following information. Quality allocates manufacturing overhead to production based on standard direct labor hours. Quality reported the following actual results for 2018: The actual number of units produced is 1,000. The actual variable overhead is $2,500. The actual fixed overhead is $3,500. The actual direct labor hours are 1,200. Data Static budget variable overhead $1,200 Static budget fixed overhead $1,600 Static budget direct labor hour $800 Static budget number of units 400 units. Static direct labor hours 2 hours per unit. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 1)-Variable overhead cost variance = Actual hours x (Actual rate Standard rate) 2)-Variable overhead efficiency variances = Standard rate x (Actual labor hours Standard labor*hours for actual production). 3)-Fixed overhead cost variances = Actual fixed overhead Budgeted fixed overhead 4)-Fixed overhead volume variances = Budgeted fixed overhead * (Budgeted labor hours Standard labor hours for actual production) Explain why the variances are favorable or unfavorable.