The following information relates to Watson, Inc's overhead costs for the month: Click the icon to viow the information.) Requirements 1. Compute the oveahead variances for the month variable overhead cost variance, variable overhead elficiency 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 overtiead cost variance variable overhead efliciency variance, fixed overtiead cost vatiance, and fixed overbinad volume variance. overherad volume variance The following information relates to Watson incis cvertead costs for the month. (Click the icun to view the information.) Requirements 1. Compute the overhead variances for the month variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost varis volume variance 2. Explain why the variances are fovorable or unfaverable Requirement 1. Computa the overhead variances foc the mo overhead volume variance. Begin by selecting the formulas needed to compute the varia Watson alocates manulacturing overhead to production based on standard direct labor hours. Last month, Watson reported the following actual results actual variable overhead, $10,700; actual fred overhead, $2.770; actual production of 7.400 units at 0.30 direct labor hours per unit. The standard direct labor time is 0.5 direct labor hours per uns (1,200 static direct tabor hours / 2,400 static units)