Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 Iba. $3.70 per Ib.) Direct labor (10 hrs. $8.80 per hr.) Variable overhead (10 hrs. $4.20 per hr.) Fixed overhead (10 hrs. $2.30 per hr.) Total standard cost $ 74.00 88.00 42.00 23.00 $227.00 758 The $6.50 ($4.20 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 62,000 units per month. The following monthly flexible budget information is also available. Flexible Dudget Operating Levels of capacity) 658 700 Budgeted output (units) 40,300 43,400 46,500 Budgeted labor (standard hours) 403,000 434,000 465,000 Budgeted overhead (dollars) Variable overhead $1,692,600 $1,822,800 $1,953,000 Fixed overhead 998, 200 998, 200 998, 200 Total overhead $2,690,800 $2,821,000 $2,951,200 During the current month, the company operated at 65% of capacity, employees worked 389,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,650,000 1,048,000 $2,698,000 Prey 6 7 of 7 Next > + (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead, Predetermined OH Rate Variable overhead costs $ 16,200.00 per DL hr. Fixed overhead costs 58,800.00 per DL hr. Total overhead costs $ 42,600.00 per DL hr. (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorablo, unfavorable, and no variance. Round "Rato per hour answers to 2 decimal places.) At 85% of Operating Capacity- Predetermined Standard DL Overhead Costs Varianco Actual Results OH Rate Fav/Unt. Hours Applied Variable overhead costs $ 16,200.00 Fixed overhead costs 58,800.00 Total overhead costs $ 42600.00