Save Homework: Chapter 23 Homework Assignment Score: 0 of 1 pt P23-27A (similar to) 1 of 1 (0 complete) HW Score: 0%, 0 of 1 pt Question Help SmartSound manufactures headphone cases. During September 2018, the company produced and sold 106,000 cases and recorded the following cost data: Click the icon to view the cost data.) Read the requirements 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) Formula Variance Direct materials cost variance Direct labor cost variance * Requirements 1. 2. Compute the cost and efficiency variances for direct materials and direct labor. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. SmartSound's management used better quality materials during September Discuss the trade-off between the two direct material variances. 3. Print Done Data Table Standard Cost Information Direct Materials $ Quantity 2 parts 0.02 hours 0.02 hours Cost 0.15 per part 7.00 per hour 10.00 per hour Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead ($28,800 for static budget volume of 96,000 units and 1,920 hours, or $15 per hour) Actual Cost Information (208,000 parts @ (1,620 hours @ $ $ 0.20 per part) 7.15 per hour) Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead $ 41,600 11,583 12,000 28,000 Print Done