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! Required information The following information applies to the questions displayed below.) Sedona Company set the following standard costs for one unit of its product

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! 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 (30 lbs. @ $2.20 per Ib.) Direct labor (20 hrs. @ $4.00 per hr.) Variable overhead (20 hrs. @ $2.20 per hr.) Fixed overhead (20 hrs. @ $1.10 per hr.) Total standard cost $ 66,00 80.00 44.00 22.00 $212.ca The $3.30 ($2.20 $110) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 52,000 units per month. The following monthly flexible budget information is also available. Operating Levels of capacity) Flexible Budget 60% 654 709 Budgeted output (units) 31,200 33,800 36,400 Budgeted labor (standard hours) 624,000 676,000 728,000 Budgeted overhead (dollars) Variable overhead $1,372,800 $1,487,200 $1,601, 600 Fixed overhead 743,600 743,600 743,600 Total overhead 52,116,400 $2,230,800 $2,345,200 During the current month, the company operated at 60% of capacity, employees worked 591,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,326,000 798,000 $2,124,000 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and foxed 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 60% of Operating Capacity Standard DL Overhead Costs Actual Results Variance Fav Unt. Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs

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