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 lbs. @ $4.10 per tb.) Direct labor (15 hrs. $6.00 per hr.) Variable overhead (10 hrs. @ $3.60 per hr.) Fixed overhead (10 hrs. @ $1.60 per hr.) Total standard cost $ 82.00 90.00 36.00 16.00 $224.00 The $5.20 ($3.60 +$1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is also available Operating Levels of capacity 65% 70% 75% 42,900 46,200 49,500 429,000 462,000 495,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,544,400 739,209 $2,283,600 $1,663,200 739,200 $2,402,400 $1,282,000 239,200 $2,521,200 During the current month, the company operated at 65% of capacity, employees worked 410,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs Total overhead costs $1,501,000 784,200 $2,285,200 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and forced overhead Predetermined OH Rate Variable overhead costs $ 406 per DL he Fixed overhead costs 100 per DL Total overhead costs 3 5 36 per DL (2) Compute the total variable and total fixed overhead variances and classly each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no varlano Round "Rate per hour answers to 2 decimal places) At 65% of Operating Capacity Predetermined Standard DL Overhead Costs Actual Results Variance Fav./Unl OH Rate Hours Applied Variable overhead costs $ 4.06 Fixed overhead costs 1.80 Total overhead costs $ 5.86