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. @ $2.60 per Ib.) Direct labor (20 hrs. @ $4.70 per hr.) Variable overhead (20 hrs. @ $2.60 per hr.) Fixed overhead (20 hrs. @ $1.20 per hr.) Total standard cost $ 78.00 94.00 52.ee 24.ee $248.00 The $3.80 ($260+ $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 61,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 55% 60% 65% 33,550 36,600 39,650 671,000 732,000 793,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,744,600 878,400 $2,623,000 $1,903,200 878,400 $2,781,600 $2,061,800 878,400 $2,940,200 During the current month, the company operated at 55% of capacity, employees worked 652,000 hours, and the following actual overhead costs were incurred. Variable overhead costs $1,714,000 Fixed overhead costs 918,000 Total overhead costs $2,632, eee (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and forced overhead. Predetermined OH Rate Variable overhead costs 2.60 per DL hr. During the current month, the company operated at 55% of capacity, employees worked 652,000 hours, and the following actual overhead costs were incurred. Variable overhead costs $1,714, eee Fixed overhead costs 918, eee Total overhead costs $2,632,eee ences (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and faxed overhead. Predetermined OH Rate Variable overhead costs S D 260 per DL he Fived overhead costs 1.20 per DL hr. Total overhead costs 3.80 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 Rale per hour answers to 2 decimal places) At 55% of Operating Capacity Predetermined Standard DL Overhead Costs Hours Actual Results Applied OH Rate Variance Favunt. Variable overhead costs 2.60 671,000 5 1,744,600 Fixed overhead costs 1.20 671,000 805,2001 Total overhead costs 3.80 2,549,800