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 this year Direct material (20 lbs. 54.10 per tb.) Direct labor (15 hrs. + $5.00 per hr.) Variable overhead (10 hrs. $3.60 per hr.) Yixed overhead (10 hrs. $1.60 per hr.) Total standard cost $ 82.00 90.00 36.00 16.00 $224.00 The $5.20 ($3.60 $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is also available. Operating levels of capacity Flexible budget 701 759 Budgeted output (unit) 42.900 budgeted labor (utandard hours) 46,200 49,500 429,000 Dodgeted overhead (dollars) 462,000 495.000 Variable overhead Fixed overhead 31.544,400 $1,663,200 $1,782,000 230.200 739,200 Total overhead 52,20),600 52.402.400 $2.521,200 During the current month, the company operated at 65% of capacity, employees worked 410,000 hours, and the following actual overhead costs were incurred. Variable overhead conta Tixed overhead coats Total overhead coats $1,501,000 784,200 $2,205,200 Exercise 21-17 Computing total variable and fixed overhead variances LO P4 $2,283,600 $2,402,400 $2,521,200 During the current month, the company operated at 65% of capacity, employees worked 410,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,501,000 784,200 $2,285,200 Exercise 21-17 Computing total variable and fixed overhead variances LO P4 (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 Overhead Costs Actual Results Variance Fav./Unt. Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs