12 Required information Part 1 of 2 Use the following information for the Exercises below. (Algo) 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 (30 pounds $2.20 per pound) poe Direct labor (20 hours @ $4.20 per DLH) Variable overhead (26 hours $2.20 per DLH) 10 ences Fixed overhead (20 hours @ $1.18 per DLH) standard cost per unit $66.00 $4.00 44.00 22.00 $216.00 The $3.30 ($2.20 $130) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40,800 units, which is 60% of the factory's capacity of 68,000 units per month. The following monthly flexible budget information is available Flexible Budget Budgeted production (units)) Budgeted direct labor (standard hours) Budgeted overhead i Variable overhead Operating tevels (% of capacity) 55% 60% 655 37,400 745,000 40,100 216,000 44,200 Fived overhead Total overhead $1,645,600 897,600 $ 3,543,200 1 1,795,200 897,600 $ 2,692,000 $ 1,344,000 897,600 $ 2,842,400 During the current month, the company operated at 55% of capacity, direct labor of 728,000 hours were used, and the following actual overhead costs were incurred Actual variable overhead Actual fixed overhead- Actual total overhead. $1,625,000 934,100 $ 2,549,100 Exercise 23-27A (Algo) Computing total variable and fixed overhead variances LO P5 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.) At 66% of Operating Capacity- Standard Direct Labor Hours Ovestead Rate Variable overhead variance $ 2.20 Fived overhead variance 1.10 Favorable Unfavorable Standard Direct Labor Hours Standard Overhead Applied Actual Overhead Overhead Vanatic 924 300