Required information Skip to question [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 (15 pounds @ $4.20 per pound) $ 63.00 Direct labor (10 hours @ $6.40 per DLH) 64.00 Variable overhead (10 hours @ $3.70 per DLH) 37.00 Fixed overhead (10 hours @ $1.50 per DLH) 15.00 Standard cost per unit $ 179.00 The $5.20 ($3.70 + $1.50) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,550 units, which is 65% of the factorys capacity of 67,000 units per month. The following monthly flexible budget information is available. Flexible Budget Operating Levels (% of capacity) 60% 65% 70% Budgeted production (units) 40,200 43,550 46,900 Budgeted direct labor (standard hours) 402,000 435,500 469,000 Budgeted overhead Variable overhead $ 1,487,400 $ 1,611,350 $ 1,735,300 Fixed overhead 653,250 653,250 653,250 Total overhead $ 2,140,650 $ 2,264,600 $ 2,388,550 During the current month, the company operated at 60% of capacity, direct labor of 382,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead $ 1,425,000 Actual fixed overhead 725,250 Actual total overhead $ 2,150,250

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.)

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.

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. The $5.20($3.70+$1.50) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,550 units, which is 65% of the factory's capacity of 67,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 60% of capacity, direct labor of 382,000 hours were used, and the following actual overhead costs were incurred. 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.) Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, per unit" to 2 decimal places.) Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no varian decimal places.) \begin{tabular}{|l|l|l} \hline Required 1 & Required 2 \\ \hline \end{tabular} Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Controllable Variance } & \\ \hline & & \\ \hline Controllable variance & & \\ \hline \end{tabular} Required 2 Required 3>