The following information relates to Jackson, Inc.'s overhead costs for the month (Click the icon to view the information) Requirements 1 Compute the overhead variances for the month variable overhead cost variance, variable overhead efficiency variance, fed overhead cont variance, and fixed overhead volume variance 2 Explain why the variances are favorable or unfavorable Requirement 1. Compute the overhead Variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance Begin by selecting the formulas needed to compute the variable overhead (VOH) and foed overhead (FOH) variances, and then computo each variance amount (Actual cost - Standard cost) Actual hours VOH cost variance (Actual hours - Standard hours allowed) Standard cost VOH officiency variance Actual overhead - Budgeted overhead FOH cost vananen Budgeted overhead - Allocated overhead = FOH volume variance 1 Data Table $ 7,000 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours $ 3,000 1,000 hours Static budget number of units 4,000 units Jackson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Jackson reported the following actual results: actual variable overhead, $10,300; actual fixed overhead, $2,810; actual production of 6,800 units at 0.40 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,000 static direct labor hours / 4,000 static units) Print Done