Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, 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) Direct materials cost variance Direct labor cost variance lve this Etext pages Get more help- Formula (AC-SC) AQ (AC-SC) AQ Variance Data table Standard Cost Information Quantity Cost Direct Materials 2 parts Direct Labor 0.02 hours $0.15 per part 10.00 per hour Variable Manufacturing Overhead 0.02 hours 8 per hour Fixed Manufacturing Overhead ($28.500 for static budget volume of 95,000 units and 1,900 hours, or $15 per hour) Actual Cost Information Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead (209,000 parts @$0.20 per part (1,600 hours $41,800 $10 10 per hour) 10,160 9,000 26.000 Print Done