The following information relates to Tallman, Inc.'s overhead costs for the month: E: (Click the icon to view the information.) 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 - Data Table = VOH efficiency variance = FOH cost variance = FOH volume variance $ 7,200 Requirement 2. Explain why the variances are favorable or unfavorable $ 3,600 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units The variable overhead cost variance is because Tallman actually spent than budgeted. 1,200 hours 2,400 units The variable overhead efficiency variance is because the actual hours used was than budgeted. The fixed overhead cost variance is because Tallman actually spent than budgeted for fixed overhead. Tallman allocates manufacturing overhead to production based on standard direct labor hours. Last month, Tallman reported the following actual results: actual variable overhead, $10,700; actual fixed overhead, $2,800; actual production of 7,300 units at 0.40 direct labor hours per unit. The standard direct labor time is 0.5 direct labor hours per unit (1,200 static direct labor hours / 2,400 static units) The fixed overhead volume variance is because Tallman allocated overhead to jobs than the budgeted fixed o