Superior Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Superior Fender allocates manufacturing overhead to production based on standard direct labor hours. Superior Fender reported the following actual results for 2018: actual number of fenders produced, 20,000; actual variable overhead, $4,500, actual food overhead, $27,000, actual direct labor hours, 370 Read the requirements. Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Begin with 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). (You may need to simply the formula based on the data provided. 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 - (AC-SC)XAQ - (AQ - SQ) SC Choose from any list or enter any number in the input fields and then continue to the next question 0 Data Table i Requirements 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable. Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours $ 2,300 $ 23,000 575 hours 23,000 units 0.025 hours per fender Print Done Superior Fender uses a standard cost system and provide the following information: (Click the icon to view the information.) Superior Fender allocates manufacturing overhead to production based on standard direct labor hours. Superior Fender reported the following actual results for 2018: actual number of fenders produced, 20,000, actual variable overhead, $4,560, actual foxed overhead, $27,000; actual direct labor hours, 370. Read the requirements Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fored overhead cost and volume variances, and identify whether och 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 Actual FOH - Budgeted FOH . FOH volume variance - Bugeted FOH - Alocated FOH = Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cost variance is because management spent than budgeted for the actual production Choose from any list or enter any number in the input fields and then continue to the next question Superior Fender uses a standard cost system and provide the following information: TE (Click the icon to view the information.) Superior Fender allocates manufacturing overhead to production based on standard direct labor hours. Superior Fender reported the following actual results for 2018: actual number of fenders produced, 20,000, actual variable overhead, $4,560, actual fixed overhead, $27,000; actual direct labor hours, 370 Read the rouirements FOH volume variance Bugeted FOH - Allocated FOH . Requirement 2. Explain why the variances are favorable or unfavorable The variable overhead cost variance is because management spent than budgeted for the actual production The variable overhead efficiency variance is labor because management used direct labor hour than standard and variable overhead is applied incurred) based on direct The fixed overhead cost variance is because management spent than the amount budgeted for fixed overhead. Choose from any list or enter any number in the input fields and then continue to the next question Superior Fender uses a standard cost system and provide the following information: !! (Click the icon to view the information.) Superior Fender allocates manufacturing overhead to production based on standard direct labor hours, Superior Fender reported the following actual results for 2018: actual number of fenders produced, 20,000, actual variable overhead, $4,560, actual fixed overhead, $27,000actual direct labor hours, 370. Read the requirements Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is because management spent than budgeted for the actual production. The variable overhead efficiency variance is labor. because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct The fored overhead con variance is because management spent than the amount budgeted for fixed overhead, The fixed overhead volume variance is because management allocated fixed overhead to jobs than was budgeted. Choose from any list or enter any number in the input fields and then continue to the next