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 Abbreviations used: AC = actual cost AQ = actual quantity: FOH-fixed overhead; SC-standard cost SQ-standard quantity.) or unfavorable (U). (Round your answers to the nearest whole dollar. Formula Variance Direct materials cost variance Direct labor cost variance