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 cost variance = (AC - SC) XAQ (AC - SC) AQ = $ 10,250U = $ 240 U Direct labor cost variance 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). (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Variance = Direct materials efficiency variance Direct labor efficiency variance Formula (AQ - SQ) x SC (AQ - SQ)X SC = $ = $ 750 F 4,500 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 = standar cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance (AC-SC) XAQ (AQ - SQ) x SC VOH efficiency variance = Choose from any list or enter any number in the input fields and then click Check Answer. Standard Cost Information Quantity Cost Direct Materials $ Direct Labor 2 parts 0.02 hours 0.02 hours 0.15 per part 9.00 per hour 10.00 per hour 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) Direct Labor $ 41,000 14,640 13,000 25,000 Variable Manufacturing Overhead Fixed Manufacturing Overhead