Sedona Company set the following standard costs for one unit of its product for 2015 Direct material (20 lbs. @ $2.50 per lb.) Direct labor (10 hrs. @ $8.00 per hr.) Factory variable overhead (10 hrs.@ $4.00 per hr.) Factory fixed overhead (10 hrs. @ $1.60 per hr.) 50 80 40 16 Standard cost 186 The $5.60 ($4.00 1 $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 (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead 70% 75% 37.500 80% 35,000 350,000 40,000 400,000 375,000 $ 1,400,000 600,000 1,600,000 600,000 $1,500,000 600,000 Fixed overhead 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. (Do not round internmediate calculations. Round "OH costs per hour" to 2 decimal places.) Variable overhead costs Fixed overhead costs $1,375,000 628,600 Total overhead costs $2,003,600 (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. -At 70% of Operating Capacity Standard DL Hours Overhead Costs Actual Results Variance Fav./Unf. Applied Variable overhead costs Fixed overhead costs Total overhead costs 9