Requirement 2. For manufacluring overhead, compute the variable overhead cost and elficiency variances and the fixed overhead cost and volurme variances. Now compute 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 VOH cost variance = VOH efficiency variance coct O-hquantir FOH = fixed overhead: SC = standard cost SO standard quanli d overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC Formula Variance FOH cOst variance FOH volume variance Requirement 3. Headsound's management used better quality materials during September. Discuss the trade-off between the two direct material variances. They hoped these materials would result in more efficient usage than "standard" materials. The result was an Headsound's management knew that using higher quality materials would result in a(n) overall i Data Table Standard Cost Information Quantity Cost $ Direct Materials 2 parts 0.15 per part 0.02 hours Direct Labor 7.00 per hour Variable Manufacturing Overhead 0.02 hours 10.00 per hour Fixed Manufacturing Overhead ($30,400 for static budget volume of 95,000 units and 1,900 hours, or $16 per hour) Actual Cost Information $ 0.20 per part) 7.15 per hour) 41,600 Direct Materials (208,000 parts @ (1,600 hours @ Direct Labor 11,440 Variable Manufacturing Overhead 12,000 25,000 Fixed Manufacturing Overhead Done Print Requirements 1 1. Compute the cost and efficiency variances for direct materials and direct labor. 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances 3. Headsound's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Print Done