SoundSmart manufactures headphone cases. During September 2016, 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) Direct materials cost variance Direct labor cost variance Formula Variance EO