! 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. Direct material (20 Ibs. @ $3.20 per Ib.) Direct labor (10 hrs. @ $8.30 per hr.) Variable overhead (10 hrs. @ $4.70 per hr.) Fixed overhead (10 hrs. @ $2.30 per hr.) Total standard cost $ 64.00 83.00 47.00 23.00 $217.00 The $7.00 ($4.70 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 57,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 55% 60% 65% 31,350 34,200 37,050 313,500 342,000 370,500 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,473,450 786,600 $2,260,050 $1,607,400 786,600 $2,394,000 $1,741,350 786,600 $2,527,950 During the current month, the company operated at 55% of capacity, employees worked 295,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,411,000 858,050 $2,269,050 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined 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. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) --------At 55% of Operating Capacity--- Standard DL Overhead Costs Actual Results Variance Fav./Unf. Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs