Sedona Company set the following standard costs for one unit of its product for this year.

Direct material (30 Ibs. @ $2.00 per Ib.)		$	60.00
Direct labor (20 hrs. @ $4.50 per hr.)			90.00
Variable overhead (20 hrs. @ $2.50 per hr.)			50.00
Fixed overhead (20 hrs. @ $1.20 per hr.)			24.00
Total standard cost		$	224.00

The $3.70 ($2.50 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 55,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			65%				70%				75%
Budgeted output (units)			35,750				38,500				41,250
Budgeted labor (standard hours)			715,000				770,000				825,000
Budgeted overhead (dollars)
Variable overhead		$	1,787,500			$	1,925,000			$	2,062,500
Fixed overhead			924,000				924,000				924,000
Total overhead		$	2,711,500			$	2,849,000			$	2,986,500

During the current month, the company operated at 65% of capacity, employees worked 678,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,715,000
Fixed overhead costs			999,200
Total overhead costs		$	2,714,200

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 and classify each as favorable or unfavorable. 3. Compute the controllable variance.