Standard Cost Information Quantity Cost 0.16 per part 2 parts Direct Materials 0.02 hours Direct Labor 7.00 per hour 10.00 per hour Variable Manufacturing Overhead 0.02 hours Fixed Manufacturing Overhead ($29,400 for static budget volume of 98,000 units and 1,960 hours, or $15 per hour) Actual Cost Information 0.21 per part) $ 45,150 Direct Materials (215,000 parts @ 7.10 per hour) 11,786 $ Direct Labor (1,660 hours @ 10,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 28,000 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. Smart Hearing's management used better quality materials during September. Discuss the trade-off between the two direct material variances. . They hoped these Smart Hearing's management knew that using higher quality materials would result in a(n) materials would result in more efficient usage than "standard" materials. The result was an overall