SoundSmart manufactures headphone cases. During September 2018, the company produced and sold 105,000 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 lebor. 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 oost: SQ = standard quantity.) Formula Variance = Direct materials cost variance Direct labor cost variance i 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. SoundSmart's management used better quality materials during September Discuss the trade off between the two direct material variances. 3. Print Done Data Table - X Standard Cost Information Quantity Cost Direct Materials 2 parts $ 0.02 hours Direct Labor Variable Manufacturing Overhead 0.16 per part 7.00 per hour 9.00 per hour 0.02 hours Fixed Manufacturing Overhead ($32,300 for static budget volume of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (205,000 parts @ (1,600 hours @ $ $ 0.21 per part) 7.10 per hour) Direct Labor $ 43,050 11,360 10,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 25,000 Print Done