Sedona Company set the following standard costs for one unit of its product for 2017. Direct material (20 Ibs. $2.50 per Ib. Direct labor (10 hrs. $22.00 per hr.) Factory variable overhead (10 hrs. $4.00 per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) Standard cost S 50.00 220.00 40.00 16.00 $326.00 The $5.60 ($4.00 + $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) 70% 35,000 75% 37,500 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 80% 40,000 400,000 350,000 375,000 $1,400,000 $1,500,000 $1,600,000 600,000 $2,000,000 $2,100,000 $2,200,000 Variable overhead Fixed overhead Total overhead 600,000 600,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred $1,375,000 628,600 $2,003, 600 Variable overhead costs Fixed overhead costs Total overhead costs AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate 1. Compute the variable overhead spending and efficiency variances. Standard Cost (VOH applied) Flexible Budget Actual Variable OH Cost AVR AH SVR SVR SH 340,000 dr 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. (Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) 3. Compute the controllable variance Controllable Variance Controllable variance