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. The $3.70($2.50+$1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 38,500 units, which is 70% of the factory's capacity of 55,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 65% of capacity, direct labor of 678,000 hours were used, and the following actual overhead costs were incurred. 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: 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. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance