! 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. @ $3.30 per Ib.) Direct labor (15 hrs. @ $6.00 per hr.) Variable overhead (15 hrs. @ $2.80 per hr.) Fixed overhead (15 hrs. @ $1.20 per hr.) Total standard cost $ 66.00 90.00 42.00 18.00 $216.00 The $4.00 ($2.80 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 58,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 708 75% 80% 40,600 43,500 46,400 609,000 652,500 696,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,705,200 783,000 $2,488, 200 $1,827,000 783,000 $1,948,800 783,000 $2,731,800 $2,610,000 During the current month, the company operated at 70% of capacity, employees worked 575,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,624,000 866,000 $2,490,000 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Variable overhead costs Fixed overhead costs Total overhead costs Predetermined OH Rate $ 2.80 per DL hr. 1.20 per DL hr. $ 4.00 per DL hr. (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 70% of Operating Capacity------- Predetermined Standard DL Overhead Costs Variance OH Rate Hours Fav./Unf. Actual Results Applied Variable overhead costs $ 2.80 609,000 $ 1,705,200 $ 1,624,000 Favorable Fixed overhead costs 1.20 609,000 Favorable Total overhead costs $ 4.00