Soundset manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Data Table Standard Cost Information prials and direct labor, and st; AQ = actual quantity; FOH = Direct Materials $ Quantity 2 parts 0.02 hours 0.02 hours Cost 0.15 per part 7.00 per hour 11.00 per hour Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead ($31,360 for static budget volume for direct materials and direct Factual cost; AQ = actual of 98,000 units and 1,960 hours, or $16 per hour) Actual Cost Information (212,000 parts @ (1,660 hours @ $ $ 0.20 per part) 7.10 per hour) $ 42,400 11,786 nces and the fixed overhead Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 13,000 31,000 ute the variable overhead cost pviations used: AC = actual Print Done tion. 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 Next compute the efficiency variances. Select the required formulas, compute the efficiency 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 efficiency variance III Direct labor efficiency variance Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume 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 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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.) Formula Variance FOH cost variance FOH volume variance = Requirement 3. Soundset's management used better quality materials during September. Discuss the trade-off between the two direct material variances. Soundset's management knew that using higher quality materials would result in a(n) V. They hoped these materials would result in more efficient usage than "standard" materials. The result was an overall