Direct material (20 lbs. @ $2.10 per Ib.) Direct labor (10 hrs. @ $8.80 per hr.) Variable overhead (10 hrs. @ $4.00 per hr.) Fixed overhead (10 hrs. @ $1.80 per hr.) Total standard cost $ 42.ee 88.00 40.00 18.00 $188.80 = The $5.80 ($4.00 + $1.80) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70.000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 65% 70% 75% 45,500 49,000 52,500 455,00 490,00 525, eee Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,820,00 882,000 $2,702,090 $1,960, eee 882,000 $2,842,899 $2,100,000 882,800 $2,982, eee During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,765, 080 943,eee $2,708,080 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 and classify each as favorable or unfavorable. 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 0 $ 0 0 Required 1 Required 2 >