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. $4.10 per Ib.) Direct labor (15 hrs. @ $6.00 per hr.) Factory variable overhead (10 hrs. $3.60 per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) Standard cost $ 82.00 90.00 36.00 16.00 $224.00 The $5.20 (53,60 + $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. 656 Operating Levele (of capacity) 703 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 Pixed overhead Total overhead $1,544,400 739,200 $2,283,600 $1,663,200 739,200 $2.402,400 $1,782,000 739,200 $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 AH = Actual Hours SH - Standard Hours AVR - Actual Variable Rat 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 70% of capacity Predetermined OH Rate Variable overhead costs $ 4.06 per DL hr. Fixed overhead costs 1.80 per DL hr. Total overhead costs 5.86 per DL.hr Fav./Unf. (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. At 65% of Operating Capacity Predetermined Standard DL Overhead Actual OH Rate Hours Costs Applied Results Variance Variable overhead costs 4.06 Fixed overhead costs 1.80 Total overhead costs 5.86