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

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[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)	$ 48.00
Direct labor (10 hours @ $7.00 per DLH)	70.00
Variable overhead (10 hours @ $4.10 per DLH)	41.00
Fixed overhead (10 hours @ $1.70 per DLH)	17.00
Standard cost per unit	$ 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 factorys capacity of 51,000 units per month. The following monthly flexible budget information is available.

Flexible Budget	Operating Levels (% of capacity)
	65%	70%	75%
Budgeted production (units)	33,150	35,700	38,250
Budgeted direct labor (standard hours)	331,500	357,000	382,500
Budgeted overhead
Variable overhead	$ 1,359,150	$ 1,463,700	$ 1,568,250
Fixed overhead	606,900	606,900	606,900
Total overhead	$ 1,966,050	$ 2,070,600	$ 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	$ 1,325,000
Actual fixed overhead	649,650
Actual total overhead	$ 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.