121 Homework 5 28 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. ebook Direct material (15 Tbs. $3.20 per Ib.) Direct Labor (10 hrs. $7.00 per hr.) Variable overhead (10 hrs. $4.10 per hr.) Fixed overhead (10 hrs. $1.70 per hr.) Total standard cost $48.00 70.00 41.00 17.00 $176.ee Print The $5.80 (54.10 - $1.70) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 51,000 units per month. The following monthly flexible budget information is also available Operating Levels of capacity Flexible Budget 705 75% Budgeted output (units) 33,150 35.700 38,250 Budgeted labor (standard hours) 331, see 357,000 382,500 Budgeted overhead (dollars) Variable overhead $1,359,150 $1,469, 700 $1,568,250 Fixed overhead 606,90 606,900 606,900 Total overhead $1,966,05e $2,078,660 52,175,150 References During the current month, the company operated at 65% of capacity, employees worked 320,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs Total overhead costs $1,325,000 649.650 $1,974,650 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Variable overhead costs Fbad overhead costs Total overhead costs 2) Compute the total variable and total fixed overhead variances and classily each as favorable or unfavorable (Indicate the effect of each varianco by selecting for favorable, unfavorable, and no variance Round "Rate per hour answers to 2 decimal places) At 65% of Operating Capacity Standard Overhead Costs Hour Applied Actual Results Variance Favint Variable overhead costs Fored overhead costs Total overhead costs