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. $2.50 per Ib. ) Direct labor (20 hrs. $4.80 per hr.) Variable overhead (20 hrs. $2.30 per hr.) Fixed overhead (20 hrs. $1.20 per hr.) Total standard cost $75.00 96.00 46.00 24.ee $241.00 The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 53,000 units per month. The following monthly flexible budget information is also available. Operating levels of capacity 65% 70% 75% 34,450 37.100 39,750 689,000 742,000 795,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,828,500 51,584,700 898,400 $2,475, 100 $1,700,000 90400 $2,597,000 52,718,000 During the current month, the company operated at 65% of capacity, employees worked 652,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs total overhead COSES $1,525,000 954,000 52,479,00 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Variable overhead costs Forced overhead costs Total overhead costs (2) Compute the total variable and total faced 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 Hours Applied Actual Results Variance Fav./Unf. Variable overhead costs Foxed overhead costs Total overhead costs 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting for favorable. unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 0 Required 2 > HORROR HALEP Required information 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Compute the faced overhead spending and volume variances and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorable . ) Actual Fixed OH cost Fixed OH (Fixed Budgeted Standard Cost (FOH applied) Required information F2 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. Compute the controllable variance. 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 for favorable, unfavorable, and no variance.) Controllable Variance 1 Controllable variance
