1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable. Premium, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information) Premium allocates manufacturing overhead to production basod on standard drect labor hours. Premium reported the folowing actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $2,300; actual fored overhead, $3,500; actual diect labor hours, 1,300. Read the reavirements Requirement 1. Compute the variable overtiead cost and efficiency variances and fixed overhesd cost and volume variances Begin with the vanable overbead cost and efficiency varances. Select the required formulas, compute the vanable overhead cost and efficiency variances, and identfy whether each variance is \begin{tabular}{ll} \hline Static budget variable overhead & $2,100 \\ Static budget fixed overhead & $2,800 \\ Static budget direct labor hours & 1,400 hours \\ Static budget number of units & 700 units \\ Standard direct labor hours & 2 hours per unit \\ \hline \end{tabular}