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 Ibs. @ $3.20 per Ib.)		$	64.00
Direct labor (10 hrs. @ $8.30 per hr.)			83.00
Variable overhead (10 hrs. @ $4.70 per hr.)			47.00
Fixed overhead (10 hrs. @ $2.30 per hr.)			23.00
Total standard cost		$	217.00

The $7.00 ($4.70 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 57,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			55%				60%				65%
Budgeted output (units)			31,350				34,200				37,050
Budgeted labor (standard hours)			313,500				342,000				370,500
Budgeted overhead (dollars)
Variable overhead		$	1,473,450			$	1,607,400			$	1,741,350
Fixed overhead			786,600				786,600				786,600
Total overhead		$	2,260,050			$	2,394,000			$	2,527,950

During the current month, the company operated at 55% of capacity, employees worked 295,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,411,000
Fixed overhead costs			858,050
Total overhead costs		$	2,269,050

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

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. 3. Compute the controllable variance.

"Rate per unit" to 2 decimal places.)

Actual Variable OH Cost			-1	Flexible Budget			-1	Standard Cost (VOH applied)
AH	x	AVR		AH	x	SVR		SH	x	SVR
	x	0			x				x
				2
-1
				$0
				0

me variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.)

Actual Fixed OH cost			1	Fixed OH (Fixed Budgeted)			-1	Standard Cost (FOH applied)
				0
-1
				$0
				0

Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.)

Actual Fixed OH cost			1	Fixed OH (Fixed Budgeted)			-1	Standard Cost (FOH applied)
				0
-1
				$0
				0

Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.)

Actual Variable OH Cost			-1	Flexible Budget			-1	Standard Cost (VOH applied)
AH	x	AVR		AH	x	SVR		SH	x	SVR
	x	0			x				x
				2
-1
				$0
				0