12 "art 1 of 2 94 Dints Required information [The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 pounds @ $2.50 per pound) Direct labor (10 hours @ $22.00 per DLH) Variable overhead (10 hours @ $4.00 per DLH) Fixed overhead (10 hours @ $1.60 per DLH) $ 50.00 220.00 40.00 16.00 Standard cost per unit $ 326.00 The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 37,500 units, which is 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Operating Levels (% of capacity) 70% 35,000 350,000 $ 1,400,000 600,000 $ 2,000,000 75% 37,500 375,000 $ 1,500,000 600,000 $ 2,100,000 80% 40,000 400,000 $ 1,600,000 600,000 $ 2,200,000 During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,375,000 628,600 $ 2,003,600 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Answer is not complete. --At 70% of Operating Capacity-... Standard Direct Labor Hours Overhead Rate Standard Favorable/Unfavorable Standard Direct Overhead Labour Actual Overhead Overhead Variance Hours Applied Variable overhead $ 4.00 350,000 $ 1,400,000 variance Favorable Fixed overhead variance 1.60 350,000 628,600 Unfavorable 13 Fixed overhead (10 hours $1.60 per DLH) Standard cost per unit Part 2 of 2 0.94 points eBook Hint Print References 16.00 $ 326.00 The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 37,500 units, which is 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of capacity) Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead 70% 35,000 350,000 $ 1,400,000 600,000 $ 2,000,000 75% 37,500 375,000 $ 1,500,000 600,000 $ 2,100,000 80% 40,000 400,000 $ 1,600,000 600,000 $ 2,200,000 During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,375,000 628,600 $ 2,003,600 AH = Actual Hours SH Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Rou "Rate per unit" to 2 decimal places.) Actual Variable OH Cost AH x Flexible Budget AVR AH x SVR Standard Cost (VOH applied) SH SVR 0 X x Total variable overhead cost variance Variable overhead spending variance Variable overhead efficiency variance $ 0 Unfavorable 0 Favorable Favorable Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Standard hours Standard fixed rate Fixed overhead spending variance Fixed overhead volume variance Total fixed overhead cost variance $ 0 Unfavorable 0 Unfavorable Unfavorable AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Fixed overhead spending variance Variable overhead efficiency variance Variable overhead spending variance Controllable variance Unfavorable Favorable Unfavorable Unfavorable