X P23-27A (similar to) Question Help SmartSound manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: B Click the icon to view the cost data.) Read the requirements. Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance (AC - SC) XAQ (AC - SC) xAQ Direct labor cost variance = [ . F A Choose from any list or enter any number in the input fields and then click Check Answer. Standard Cost Information Cost Direct Materials $ Quantity 2 parts 0.02 hours 0.02 hours Direct Labor 0.15 per part 9.00 per hour 10.00 per hour Variable Manufacturing Overhead Fixed Manufacturing Overhead ($32,300 for static budget volume of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (205,000 parts @ (1,600 hours @ $ $ 0.20 per part) 9.15 per hour) $ 41,000 14,640 Direct Labor 13,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead 25,000