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The following information relates to Smithson, Inc.'s overhead costs for the month Click the icon to view the information) Requirements 1. Compute the overhead variances for the m oth: variable overhead cost variance, variable overhead efficiency variance, fed overhead cost venance 2. Explain why the variances are favorable or unfavorable and dove Requirement 1. Compute the overheid variances for the month: variable overhead cost variance, variable overhead officiency variance, faced overhead cost overhead volume variance Begin by selecting the formulas needed to compute the variable overhead (VOH) and fixed overhead (FOH) variances, and then compute each variance amount Actual con Standard cost X Actual hours VOH COST Vanane Achoun dod holowed Standard cost = VOH officiency variance FOH Contvanance FOH Voumevance Requirement 2 Explain why the vanances are favorable or unfavorable The variable overhead cost variance is because Morgan actually spent than budgeted Choose from any list or enter any number in the input fields and then continue to the next question Data Table month: verhead cost variant er unfavo $ $ ces for Stac budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units 7,800 3,900 1,300 hours 5,200 units ance, fixed overhead mpute the mpute each variance andard ca Morgan allocates manufacturing overhead to production based on standard direct labor hours. Last month, Morgan reported the following actual results: actual variable overhead, $10,800; actual fixed overhead, $2,770; actual production of 7,000 units at 0.20 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours / 5,200 static units). are favorabil Print Done in the input fields and then continue to the next

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