The following information relates to Tallman, Inc.$\text{'}$s overhead costs for the month:

BEB $($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$)\backslash$times Actual hours

$($Actual hours $-$ Standard hours allowed$)$ Standard cost

Actual overhead $-$ Budgeted overhead

Budgeted overhead $-$ Allocated overhead