Requirement $2.$ Explain why the variances are favorable or unfavorable.

The variable overhead cost variance is $$ because Morgan actually spent $$ than budgeted.

The variable overhead efficiency variance is $$ because the actual hours used was $$ than budgeted.

The fixed overhead cost variance is $$ because Morgan actually spent $$ than budgeted for fixed overhead.

The fixed overhead volume variance is $$ because Morgan allocated $$ overhead to jobs than the budgeted fixed overhead amount.