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 (30 Ibs. $2.60 per Ib.) Direct labor (20 hrs. @ $4.70 per hr.) Factory variable overhead (20 hrs. @ $2.60 per hr.) Factory fixed overhead (20 hrs. @ $1.20 per hr.) S 78.00 94.00 52.00 24.00 Standard cost $248.00 The $3.80 ($2.60+ $1.20) total overhead rate per direct labor hour is based on an expected operating level of the factory's capacity of 61,000 units per month. The following monthly flexible budget information is also Operating Levels (% of capacity) 60% 36,600 Flexible Budget 55% 65% Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead 33,550 671,000 39,650 793,000 732.,000 $1,744,600 $1,903,200 878,400 $2,061,800 878,400 878.400 Total overhead $2,623,00e $2,781,600 $2,940,200 During the current month, the company operated at 55% of capacity, employees worked 652,000 hours, and t actual overhead costs were incurred. Variable overhead costs $1,714,00e 918,e00 Fixed overhead costs Total overhead costs $2,632,000 AH Actual Hours SH Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR Standard Fixed Rate 1. Compute the variable overhead spending and efficiency variances. Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) AH AVR X AH SVR SH SVR X 2.60 S 260 X 0 0 2 Compute the fixed overhead spendingg and volume variances and classify each as favorable or unfavorable. Standard Cost (FOH applied) Fixed OH (Fixed Budgeted) Actual Fixed OH cost 0 0 3. Compute the controllable variance. Controllable Variance Controllable variance