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Question $6$

Requirement $1.$ Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances.

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 $(U).($Abbreviations used: $AC=$

actual cost; $AQ=$ actual quantity; FOH $=$ fixed overhead; $SC=$ standard cost; $SQ=$ standard quantity; VOH$=$ variable overhead.$)$

Formula

Variance

Requirements

Compute the variable overhead cost and efficiency variances and fixed

overhead cost and volume variances.

Explain why the variances are favorable or unfavorable.

Data table