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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

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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 2017 Direct material (30 lbs. e $2.50 per Ib.) Direct labor (20 hrs. $4.80 per hr.) Factory variable overhead (20 hrs. $2.30 per hr.) Pactory fixed overhead (20 hrs. $1.20 per hr.) Standard cost $ 75.00 96.00 46.00 24.00 $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) 650 701 4.450 37.100 39.750 689,000 742,000 795,000 Plexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1.584.700 890,400 $2,475, 100 $1,706.600 890,400 $2,597,000 $1.828.500 390.400 $2,718,900 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 Pixed overhead costs Total overhead costs $1,525,000 954.000 $2.479.000 Total overhead costs $2 ,4/9, U U AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 70% of capacity Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs Fav./Unf. (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. At 65% of Operating Capacity- Standard DL Overhead Actual Hours Costs Applied Results Variance Variable overhead costs Fixed overhead costs Total overhead costs

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