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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 21-27A (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.)