The following information relates to Longman, Inc.'s overhead costs for the month: B (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. 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 fixed overhead (FOH) variances, and then compute each variance amount. (Actual cost - Standard cost) * Actual hours VOH cost variance 25200 = VOH efficiency variance 4830 Data table (Actual hours - Standard hours allowed) * Standard cost Actual overhead - Budgeted overhead = FOH cost variance $ 180 Budgeted overhead - Allocated overhead FOH volume variance = 240 Static budget variable overhead $ 7,000 $ 3,000 Static budget fixed overhead Static budget direct labor hours 1,000 hours Static budget number of units 4,000 units Longman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Longman reported the following actual results: actual variable overhead, $10,600; actual fixed overhead, $2,820; actual production of 6,900 units at 0.30 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) Help me solve this Etext pages Get more help Media