Requirement 1. Compute the overhead variances for the year: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 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). (You may need to simply the formula based on the data provided. 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 = (AC - SC) AQ = $2,730 U VOH efficiency variance = (AQ - SQ) SC = $800 F Part 2 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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.) Formula Variance FOH cost variance = Actual FOH - Budgeted FOH = 34000 FOH volume variance = Bugeted FOH - Allocated FOH = Help me solve thisDemodocs example Get more help pop-up content starts Data table Static budget variable overhead $3,640 Static budget fixed overhead $29,120 Static budget direct labor hours 728 hours Static budget number of units 26,000 units Standard direct labor hours 0.028 hours per fender