gn ror tne Exercises below The following information applies to the questions displayed below.) Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (15 Ibs.$4.20 per Ib.) Direct labor (10 hrs. $6.40 per hr.) Factory variable overhead (10 hrs. $3.70 per hr. Factory fixed overhead (10 hrs. $1.50 per hr.) Standard cost 63.00 64.00 37.00 15.00 $179.00 The $5.20 ($3.70+$1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 67,000 units per month. The following monthly flexible budget information is also available perating Levels ( of capacity) 608 40,200 658 43,550 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 46,900 402,000 435, 500 $1,487,400 $1,611,350 $1,735,300 653, 250 Variable overhead Fixed overhead Total overhead 653,250 653,250 $2,140,650 $2,264,600 $2,388,550 During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs Total overhead costs $1,425, 000 725,250 $2,150,250 AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate Exercise 21-17 Computation of total variable and fixed overhead variances LO P3 the 65% of capacity. 1 Pray 4 5 of9 Next > (1) Compute the predetermined overhead a 65% of capacity. rate per hour for variable overhead, fixed overhead, and total overhead at OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable t 60% of Operating Capacity Actual Results Standard DL Overhead Fav/Unf Variance Costs Applied Variable o costs Total overhead costs