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 (20 lbs. $2.50 per Ib.) Direct labor (10 hrs. @ $22.00 per hr.) Factory variable overhead (10 hrs. $4.00 per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) Standard cost $ 50.00 220.00 40.00 16.00 $326.00 The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available. Operating Levels (8 of capacity) Flexible Budget 705 758 BON Budgeted output (units) 35,000 37,500 40,000 Budgeted labor (standard hours) 350,000 375,000 400,000 Budgeted overhead (dollars) Variable overhead $1,400,000 $1,500,000 $1,600,000 Fixed overhead 600,000 600,000 600,000 Total overhead $2,000,000 $2,100,000 $2,200,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,375,000 628,600 $2,003,600 AH - Actual Hours SH - Standard Hours AVR - Actual Variable Rate SVR Standard Variable Rate SFR - Standard Fixed Rate Exercise 21-17 Computation of total variable and fixed overhead variances LO P3 (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 75% of capacity 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 ......At 70% of Operating capacity Standard DL Overhead Costs Actual Results Variance Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs Fav./Unf