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 (20 Ths. $2.50 per tb.) Direct labor (10 hrs. $22.00 per hr.) Factory variable overhead (10 hrs. & $4.00 per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) Standard cost $ 50.00 220.00 40.00 16.00 $326.00 The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available. Operating Level of capacity) Flexible Badget 700 758 800 Budgeted output (units) 35,000 37,500 40,000 Budgeted labor (standard hours) 350,000 375,000 400,000 Budgeted overhead (dollars) Variable overhead $1,400,000 $1,500,000 $1,600,000 Fixed overhead 600.000 600,000 600,000 Total overhead $2,000,000 $2,100,000 $2,200,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred. Variable overhead contu Fixed overhead coats $1,375,000 620.600 Variable overhead costs Fixed overhead costs Total overhead coats $1,375,000 628,600 $2,003,600 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 75% of capacity Predetermined OH Rato Variable overhead costs Fixed overhead costs Total overhead costs Fav./Unt. (2) Compute the total variable and total foxed overhead variances and classify each as favorable or unfavorable At 70% of Operating capacity Standard DL Overhead Costs Hours Variance Applied Actual Results Variable overhead costs Fixed overhead costs Total overhead coats