Required information Use the following information for the Exercises below. 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 lbs. 52.20 per Ib.) Direct labor (10 hrs. @ $4.60 per hr.) Factory variable overhead (10 hrs. @ $3.00 per hr.) Factory fixed overhead (10 hrs. @ $1.50 per hr.) Standard cost $66.00 46.88 30.00 15.00 $157.ee The $4.50 ($3.00+ $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 65,000 units per month. The following monthly flexible budget information is also available. Operating Levels of capacity) 792 42,250 45,500 48,750 422.500 455.000 487.500 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,267,500 682,500 $1,950,000 $1,365,000 682,500 $2,847,500 $1.462.500 682,500 $2,145,000 During the current month, the company operated at 65% of capacity, employees worked 400,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs Total overhead costs $1.224,000 730,000 $1.954,000 AH - Actual Hours SH - Standard Hours AVRActual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate Exercise 21-18A Computation and interpretation of overhead spending, efficiency, and volume variances LO P4 Exercise 21-18A Computation and interpretation of overhead spending, efficiency, and volume variances LO P4 1. Compute the variable overhead spending and efficiency variances Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Commute therrllah variare 3. Compute the controllable variance. Controllable Variance Controllable variance