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 of actual quantity: FOH = fixad overhead; SC = standard cost; SQ = standard quantity; VOH= variable overheed.) (F) or unfavorable (U). (Abbreviations used: AC= actual cost AQ= Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost a quantity, FOH= fbed overhead; SC= standard cost; SQ= standard quantity.) Requirement 2. Explain why the variances are favorable or unfavorable. The variable overhead cost variance is The variable overhead efficiency variance is The fixed overhead cost variance is The fixed overhead volume variance is because the actual cost per direct labor hour was because management used because the total foxed overhead cost was because total fixed overhead cost allocated to units was than the standard coet per direct labor hour. direct labor hours than standard and variable overhead is appliad (incurred) based on direct labor. than the amount budgeted for total foxed overhead. than the total budgeted fixed overhead cost. Infavorable (U). (Abbroviations used: AC= actual cost; AQ= actual Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) direct labor hours, 1,400. Read the requirements. Requirement 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead. ) Requirements 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. Data table