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 pounds @ $4.10 per pound) Direct labor (15 hours @ $6.00 per DLH) Variable overhead (10 hours @ $3.60 per DLH) Fixed overhead (10 hours @ $1.60 per DLH) Standard cost per unit The $5.20 ($3.60 + $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Actual variable overhead Actual fixed overhead Actual total overhead $ 82.00 90.00 36.00 16.00 $ 224.00 $ 1,501,000 784,200 $ 2,285,200 Operating Levels (% of capacity) 65% 75% 70% 46,200 462,000 49,500 495,000 42,900 429,000 $ 1,544,400 $ 1,782,000 739,200 739,200 $ 2,283,600 $ 2,402,400 $ 2,521,200 During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred. $ 1,663,200 739,200

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. The $5.20($3.60+$1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 46,200 units, which is 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred. is avaluate. During the current month, the company operated at 65% of capacity, direct labor of 410,000 hours were used, and the following actual overhead costs were incurred. - Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by electing favorable, unfavorable, or no variance.) Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by electing favorable, unfavorable, or no variance.)