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 Iba. $2.60 per Ib.) Direct labor (10 hrs. e $8.00 per hr.) Variable overhead (10 hrs. @ $4.40 per hr.) Fixed overhead (10 hrs. e $2.00 per hr. ) Total standard cost $ 52.00 80.00 44.00 20.00 $196.00 The $6.40 ($4.40 + $2.00) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 54,000 units per month. The following monthly flexible budget information is also available. Operating Levels (8 of cabacity) Plexible Budget 708 750 BOS Budgeted output (units) 37,800 40,500 43,200 Budgeted labor (standard hours) 378,000 405,000 432,000 Budgeted overhead (dollars) Variable overhead $1,663,200 $1,782,000 $1,900,800 Fixed overhead 810,000 810,000 810,000 Total overhead $2,473,200 $2,592,000 $2,710,800 During the current month, the company operated at 70% of capacity, employees worked 365,000 hours, and the following actual overhead costs were incurred. During the current month, the company operated at 70% of capacity, employees worked 365,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,625,000 854,000 $2,479,000 (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 70% of Operating Capacity Standard DL Overhead Costs Actual Results Variance Fav./Unt. Hours Applied Variable overhead costs Favorable Fixed overhead costs Unfavorable Unfavorable Total overhead costs