= Homework: Ch 23 B Homework (Required) Question 7, E23-21 (similar to) Part 1 of 6 HW Score: 72%, 72 of 100 points O Points: 0 of 14 Save Great, Inc. uses a standard cost system and provides the following information. : (Click the icon to view the information.) Great allocates manufacturing overhead to production based on standard direct labor hours. Great reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $5,000; actual fixed overhead, $3,500; actual direct labor hours, 1,500. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, 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; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Data table Requirements $2,200 Static budget variable overhead Static budget fixed overhead 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. $3,300 Static budget direct labor hours 1,100 hours Static budget number of units 550 units Standard direct labor hours 2 hours per unit Print Done Print Done