! 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 lbs. @ $2.10 per Ib.) Direct labor (10 hrs. @ $8.80 per hr.) Variable overhead (10 hrs. @ $4.00 per hr.) Fixed overhead (10 hrs. @ $1.82 per hr.) Total standard cost $ 42.00 88.00 40.ee 18.88 $188.00 The $5.80 ($4.00+ $1.80) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70.000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 65% 70% 75% 45,5ee 49,00 52,500 455,000 490,00 525, eee Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,828,000 882,00 $2,702,080 $1,960,eee 882,899 $2,842,899 $2,180, eee 882,800 $2,982.ee During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,765, eee 943,80 $2,708,000 (, , . (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 65% of Operating Capacity-- Standard DL Overhead Costs Actual Results Variance Fav./Unf. Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs