! 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 pounds @ $2.50 per pound) Direct labor (10 hours @ $22.00 per DLH) Variable overhead (10 hours @ $4.00 per DLH) Fixed overhead (10 hours @ $1.60 per DLH) Standard cost per unit $ 50.00 220.00 40.00 16.00 $ 326.00 The $5.60 ($4.00+ $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 37,500 units, which is 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of capacity) 708 75% 808 35,000 37,500 40,000 350,000 375,000 400,000 Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead $ 1,400,000 600,000 $ 2,000,000 $ 1,500,000 600,000 $ 2,100,000 $ 1,600,000 600,000 $ 2,200,000 During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,375,000 628,600 $ 2,003,600 Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) SH SVR AH AVR AH SVR X 0 $ 1,375,000 $ 0 Unfavorable Variable overhead spending variance Variable overhead efficiency variance 0 Favorable Total variable overhead cost variance Favorable Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Standard hours Standard fixed rate $ 600,000 628,600 $ 28,600 Fixed overhead spending variance $ 28,600 Unfavorable Fixed overhead volume variance 0 Unfavorable Total fixed overhead cost variance Unfavorable Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance Controllable variance