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. Direct material (15 pounds @ $3.20 per pound) Direct labor (10 hours @ $7.00 per DLH) Variable overhead (10 hours @ $4.10 per DLH) Fixed overhead (10 hours @ $1.70 per DLH) Standard cost per unit $ 48.00 70.00 41.00 17.00 $ 176.00 The $5.80 ($4.10 + $1.70) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 35,700 units, which is 70% of the factory's capacity of 51,000 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 Operating Levels (% of capacity) 65% 70% 75% 35,700 357,000 38,250 382,500 33,150 331,500 $ 1,359,150 606,900 $ 1,966,050 $ 1,463,700 606,900 $ 2,070,600 $ 1,568,250 606,900 $ 2,175,150 During the current month, the company operated at 65% of capacity, direct labor of 320,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,325,000 649,650 $ 1,974,650 Exercise 21-28A (Algo) Detailed overhead variances LO P5 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. 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) AH AVR AH X SVR SH X SVR -1 320,000 $ 4.10 320,000 X $1,312,000 $ 0 2 1