Required information Use the following information for the Exercises below. (Algo) [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 $7.00($4.70+$2.30) total overhead rate per direct labor hour (DL.H) is based on a predicted activity level of 34.200 units, which is 60% of the factory's capacity of 57,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 55% of capacity, direct labor of 295,000 hours were used, and the following actual overhead costs were incurred. Exercise 21-27A (Algo) Computing total variable and fixed overhead variances LO P5 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) During the current month, the company operated at 55% of capacity, direct labor of 295,000 hours were used, and the following actual overhead costs were incurred. Exercise 21-27A (Algo) Computing total variable and fixed overhead variances LO P5 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)