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Superior, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Superior allocates manufacturing overhead to production based on standard direct labor hours. Superior reported the following actual results for 2018: actual number of units produced, 1,000; actual variable overhead, $5,000; actual fixed overhead, $2,800; actual direct labor hours, 1,700. Read the requirements. 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 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 i Data Table X Formula Variance VOH cost variance VOH efficiency variance Static budget variable overhead $1,200 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead F) or unfavorable (U). (Abbreviations used: A actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Static budget fixed overhead $1,600 Static budget direct labor hours 800 hours Formula Variance Static budget number of units 400 units FOH cost variance Standard direct labor hours 2 hours per unit FOH volume variance Requirement 2. Explain why the variances are favorable or unfavorable. Print Done The variable overhead cost variance is because the actual cost per direct labor hour was than the The variable overhead efficiency variance is because management used direct labor hours than standard and variable overhead is applied (incurred) based on direct labor. The fixed overhead cost variance is because the total fixed overhead cost was than the amount budgeted for total fixed overhead. Choose from any list or enter any number in the input fields and then continue to the next question. ? MacBook Pro OSC G Search or type URL

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