The following information relates to Longman, 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, fixed overhead cost variance, and fixed overhead volume variance. 2. unfavorable Explain why the variances are favorable 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 fixed overhead (FOH) variances, and then compute each variance amount. = VOH cost variance = VOH efficiency variance - Data Table FOH cost variance FOH volume variance S 7,500 Static budget variable overhead Requirement 2. Explain why the variances are favorable unfavorable S 3.000 Static budget fixed overhead because Longman actually spent than budgeted. The variable overhead cost variance is Static budget direct labor hours 1,500 hours than budgeted. The variable overhead efficiency variance is because the actual hours used was Static budget number of units 7,500 units Longman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Longman reported the than budgeted for fixed overhead. The fixed overhead cost variance is because Longman actually spent overhead to jobs than the budgeted fixed overhead amount. fred cuerhead $2.790: actual productico of 7..000.units at 0.40 direct labor hours per unit. The standard direct labor time is 0.2 direct labor hours per unit (1,500 static direct labor hours/7,500 static units) because Longman allocated The fixed overhead volume variance is Print Done