Required information

Use the following information for the Exercises below. $($Algo$)$

Skip to question

$[$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 @ $$3\mathrm{.}30$ per pound$)$ $ $66\mathrm{.}00$

Direct labor $(15$ hours @ $$6\mathrm{.}00$ per DLH$)90\mathrm{.}00$

Variable overhead $(15$ hours @ $$2\mathrm{.}80$ per DLH$)42\mathrm{.}00$

Fixed overhead $(15$ hours @ $$1\mathrm{.}20$ per DLH$)18\mathrm{.}00$

Standard cost per unit $ $216\mathrm{.}00$

The $$4\mathrm{.}00($$$2\mathrm{.}80+$ $$1\mathrm{.}20)$ total overhead rate per direct labor hour $($DLH$)$ is based on a predicted activity level of $43,500$ units, which is $75\%$ of the factory$$s capacity of $58,000$ units per month. The following monthly flexible budget information is available.

Flexible Budget Operating Levels $(\%$ of capacity$)$

$70\%75\%80\%$

Budgeted production $($units$)40,60043,50046,400$

Budgeted direct labor $($standard hours$)609,000652,500696,000$

Budgeted overhead

Variable overhead $ $1,705,200$ $ $1,827,000$ $ $1,948,800$

Fixed overhead $783,000783,000783,000$

Total overhead $ $2,488,200$ $ $2,610,000$ $ $2,731,800$

During the current month, the company operated at $70\%$ of capacity, direct labor of $575,000$ hours were used, and the following actual overhead costs were incurred.

Actual variable overhead $ $1,624,000$

Actual fixed overhead $866,000$

Actual total overhead $ $2,490,000$

Exercise $21-27$A $($Algo$)$ Computing total variable and fixed overhead variances LO P$5$

$1.$ 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.$)$ Will leave good review if answers are put in boxes as shown in picture.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 $$4\mathrm{.}00($$$2\mathrm{.}80+$$$1\mathrm{.}20)$ total overhead rate per direct labor hour $($DLH$)$ is based on a predicted activity level of $43,500$

units, which is $75\%$ of the factory's capacity of $58,000$ units per month. The following monthly flexible budget information

is available.

During the current month, the company operated at $70\%$ of capacity, direct labor of $575,000$ hours were used, and the

following actual overhead costs were incurred.

Exercise $21-27$A $($Algo$)$ Computing total variable and fixed overhead variances LO P$5$

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.$)$

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.$)$