Standard Cost Information Direct Materials $ Quantity 2 parts 0.02 hours 0.02 hours Cost 0.15 per part 9.00 per hour 10.00 per hour Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead ($32,300 for static budget volume of 95,000 units and 1,900 hours, or $17 per hour) Actual Cost Information Direct Materials (205,000 parts @ (1,600 hours @ $ 0.20 per part) $ 9.15 per hour) $ 41,000 14,640 Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead 13,000 25,000 2x P23-27A (similar to) :3 Question Help SmartSound manufactures headphone cases. During September 2018, the company produced and sold 105,000 cases and recorded the following cost data: (Click the icon to view the cost data.) Read the requirements. = Direct materials efficiency variance Direct labor efficiency variance (AQ - SQ) x SC (AQ - SQ) SC = $ = $ 750 4,500 F F Requirement 2. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. Now compute 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.) VOH cost variance VOH efficiency variance Formula (AC-SC) XAQ (AQ - SQ) SC = = $ $ Variance 3,000 5,000 F F = 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 FOH volume variance =