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 pounds @ $2.00 per pound} $ 60.00 Direct labor [20 hours 0 54.50 per DLH) 90.00 Variable overhead {20 hours 0 $2.90 per DLH} 58.00 Fixed overhead :20 hours Q $1.20 per DLH] 24.00 Standard cost per unit $ 232.00 The $4.10 {$2.90 + 51.20] total overhead rate per direct labor hour {DLH} is based on a predicted activity level of 40.950 units, which is 65% ofthe factory's capacity of 63,000 units per month. The following monthly flexible budget information is available. Operating Levels [% of capacity] Flexible Budget 60% 65% 70% Budgeted production (units) 31,800 40,950 44,100 Budgeted direct labor {standard hours) 256,000 819,000 832,000 Budgeted overhead Variable overhead $ 2,192,400 $ 2,3?5,100 3 2,55?,800 Fixed overhead 982,800 982,300 992,800 Total overhead $ 3,1?5,200 $ 3,35?,900 3 3,540,600 During the current month. the company operated at 60% of ca pacity. direct labor of 726,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead 3 2,120,000 Actual fixed overhead 1,065,000 Actual total overhead 3 3:135;UUD 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. {Indicate the effect of the variance by selecting favorable, unfavorable. or no variance} 2. Compute the total xed overhead variance and identify it as favorable or unfavorable. {Indicate the effect ofthe variance by selecting favorable, unfavorable. or no variance} Variable overhead variance Fixed overhead variance