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 Ibs. @ $2.50 per Ib.) $ 50.00

Direct labor (10 hrs. @ $22.00 per hr.) 220.00

Factory variable overhead (10 hrs. @ $4.00 per hr.) 40.00

Factory fixed overhead (10 hrs. @ $1.60 per hr.) 16.00

Standard cost $ 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.

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 costs		$	1,375,000
Fixed overhead costs			628,600
Total overhead costs		$	2,003,600

AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed Rate

		Operating Levels (% of capacity)
Flexible Budget			70%				75%				80%
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
1. 1. Compute the variable overhead spending and efficiency variances. 2 . Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. (Round "Rate per unit" to 2 decimal places.) 3. Compute the controllable variance.