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 pounds @ $3.30 per pound) Direct labor (15 hours @ $6.00 per DLH) Variable overhead (15 hours@ $2.80 per DLH) Fixed overhead (15 hours @ $1.20 per DLH) Standard cost per unit The $4.00 ($2.80+ $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,500 units, which is 75% of the factory's capacity of 58,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead $ 1,624,000 866,000 $ 2,490,000 $66.00 90.00 42.00 18.00 $216.00 Operating Levels (% of capacity) 70% 75% 40,600 609,000 $ 1,705, 200 783,000 $ 2,488, 200 43,500 652,500 $ 1,827,000 783,000 $ 2,610,000 80% 46,460 696,000 During the current month, the company operated at 70% of capacity, direct labor of 575,000 hours were used, and the following actual overhead costs were incurred. $ 1,948,800 783,000 $ 2,731,800 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 fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

Required information The fonowing informatron applies to the questions displayed below] Sedona Company set the following standard costs for one unit of its product for this year. The $4.00($2.80+$120) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 43,500 units, which is 75% of the factory's capacity of 58,000 ynits per month. The following monthly flexible budget information is avalable: During the current month, the company operated at 70% of capacity, direct labor of 575,000 hours were used, and the following actual overthead costs were incurred. 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 fixed overhead varlance and identify it as favorable or unfavorable: (Indicote the effect of the varionce by selecting favorable, unfovorable, or no variance.)