Sedona Company set the following standard costs for one unit of its product for 2017. Direct material (20 Ibs. $2.10 per Ib.) Direct labor (10 hrs. $8.80 per hr.1) Factory variable overhead (10 hrs. $4.00 per hr. Factory tixed overhead (10 hr. $1.80 per hr.) Standard cost s 42.00 88.00 40.00 18.00 $188.00 The $5.80 ($4.00+$1.80) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70,000 units per month. The following monthly flexible budget information is also available Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 75t 651 45, 500 52, 500 525,000 49,000 490,000 455,000 Variable overhead Fixed overhead Total overhead $1,820, 000 $1,960,000 $2,100, 000 882,000 882,000 982,000 $2,702,000 $2, 842,000 $2,982,000 During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred. $1,765,000 943,000 Variable overhead costs Fixed overhead costs $2,708, o00 AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR- Standard Fixed Rate following actual overhead costs were incurresd. u Lapacity, erfiployes worked 435,00o hours, and the Variable overhead coses Fixed overhead costs $1,765,000 943,000 $2,708,000 AH- Actual Hours SH - Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 70% of Predetermine 4.00 per DL hr 1.80 per DL hr 5.80 per DL hr Variable overhead costs Fixed overhead costs Total overhead costs e the total variable and total fixed overhead variances and classify each as favorable or unfavorable Actual Results Predetermined Standard DLOverhead Fav./Unf Variance Hours OH Rate 55,000 Favorable 455,000 S 1,820,000$ 1,765,000 S 55,0002,708,000 Variable overhead costs Fixed overhead costs Total overhead costs 4.00 1.80 5.80 943.000