Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance 2. Explain why the variances are favorable or unfavorable Requirement 1. Compute the overhead variances for the month: variable owerhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each Actual overhead(Actual hours x Standard price) (Actual hours - Standard hours allowed) x Standard price Actual overhead - Budgeted overhead Budgeted overhead - Allocated overhead Data Table VOH cost variance VOH efficiency vanance FOH cost variance FOH volume variance = = Static budget variable overhead $ 7,000 = Static budget fixed overhead $ 3,000 Static budget direct labor hours 1,000 hours Static budget number of units 4,000 units Goldman allocates manufacturing on standard direct labor hours. Last month, Goldman reported the following actual results: actual variable overhead, $10,800; actual fixed overhead, $2,780; actual production of 7,400 units at 0.40 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per uni 1,000 static direct labor hours4,000 static units) overhead to production base Enter any number in the edit fields and then click Check Answer parts remaining Clear All