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. $ 52.00 80.ee Direct material (20 lbs. @ $2.68 per Ib.) Direct labor (10 hrs. $8.00 per hr.) Variable overhead (18 hrs. @ $4.40 per hr.) Fixed overhead (10 hrs. @ $2.ee per hr.) 44.00 20.ee Total standard cost $196.ee The $6.40 ($4.40 - $2.00) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 54,000 units per month. The following monthly flexible budget information is also available. Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Operating Levels (% of capacity) 7ex 75% sex 37,800 40, 500 43,200 378,000 405, Bee 432, eee $1,663,200 810,000 $1,782,00 810, eee $1,900,800 810,eee Total overhead $2,473,200 $2,592,200 $2,710,80 During the current month, the company operated at 70% of capacity, employees worked 365,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs $1,625,000 854,000 $2,479,000 Total overhead costs 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. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance Controllable variance