Requirements1.Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.Explain why the variances are favorable or unfavorable.2.Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, foxed overhead cost variance, and foxed overhead volume variance.Begin by selecting the formulas needed to compute the variable overhead (VOH) and fioxed overhead (FOH) variances, and then compute each variance amount.Actual overhead - (Actual hours x Standard price)(Actual hours - Standard hours allowed) x Standard priceActual overhead - Budgeted overheadBudgeted overhead - Allocated overhead= VOH cost variance%3DData Table= VOH efficiency variance%3D|= FOH cost variance= FOH volume variance Data tableStatic budget variáble overhead7,800Static budget fixed overhead$43,900Static budget direct labor hours1,300 hoursStatic budget number of units5,200 unitsWatson allocates manufacturing overhead to production based onstandard direct labor hours. Last month, Watson reported thefollowing actual results: actual variable overhead, $10,500; actualfixed overhead, $2,770; actual production of 6,800 units at 0.30direct labor hours per unit. The standard direct labor time is 0.25direct labor hours per unit (1,300 static direct labor hours / 5,200static units).%24

Name: Requirements1.Compute the overhead variances for the month: variable
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Requirements1.Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.Explain why the variances are favorable or unfavorab