Requirement $2.$ Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing$$ overhead, compute the variable overhead$$ cost$,$ variable overhead$$ efficiency, fixed overhead$$ cost$,$ and fixed overhead volume variances. Round to the nearest dollar.

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$).($Round your answers to the nearest whole dollar. 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$)\backslash$times AQ

$=$

F

Direct labor cost variance

$=$

$($AC $-$ SC$)\backslash$times AQ

$=$

$$

Part $3$

Next compute the efficiency variances. Select the required$$ formulas, compute the efficiency variances for direct materials and direct$$ labor, and identify whether each variance is favorable$($F$)$ or unfavorable$($U$).($Round your answers to the nearest whole dollar. Abbreviations$$ used: AC$=$ actual$$ cost; AQ$=$ actual$$ quantity; FOH$=$ fixed$$ overhead; SC$=$ standard$$ cost; SQ$=$ standard$$ quantity.$)$

Formula

Variance

Direct materials efficiency variance

$=$

$=$

Direct labor efficiency variance

$=$

$=$