The following information relates to Watson, 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. 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 overhead - (Standard hours allowed Standard cost) = VOH cost variance = VOH efficiency variance = FOH cost variance = FOH volume variance Choose from any drop-down list and then click Check Answer. Clear All parts Check Answer 5 remaining Data Table X $ 7,500 $ 3,000 Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 1,500 hours 7,500 units Watson allocates manufacturing overhead to production based on standard direct labor hours. Last month, Watson reported the following actual results: actual variable overhead, $10,500; actual fixed overhead, $2,840; actual production of 6,800 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) Print Done