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 3. Compute the controllable variance Controllable Variance Variable overhead efficiency variance Variable overhead spending variance Fixed overhead spending variance 3,600 Unfavorable Controllable variance