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. $ 60.00 90.00 Direct material (30 lbs. @ $2.00 per Ib.) Direct labor (20 hrs. @ $4.50 per hr.) Variable overhead (20 hrs. @ $2.50 per hr.) Fixed overhead (20 hrs. @ $1.20 per hr.) 50.00 24.00 Total standard cost $224.00 The $3.70 ($2.50 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 55,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 70% 75% Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead 65% 35,750 715,000 41,250 38,500 770,000 825,000 $1,787,500 924,000 $2,711,500 Fixed overhead $1,925,000 924,000 $2,849,000 $2,062,500 924,000 Total overhead $2,986,500 During the current month, the company operated at 65% of capacity, employees worked 678,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs $1,715,000 999, 200 $2,714,200 Total overhead costs (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead 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 hour answers to 2 decimal places.) --At 65% of Operating Capacity-- Standard DL Hours Overhead Costs Applied Actual Results Variance Fav./Unf. Variable overhead costs Fixed overhead costs Total overhead costs 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 Flexible Budget Standard Cost (VOH applied) 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 Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Controllable variance