Sedona Company set the following standard costs for one unit of its product for 2015 Direct material (30 lbs. $2.50 per lb.) Direct labor (20 hrs. @ $4.60 per hr.) Factory variable overhead (20 hrs. $2.50 per hr.) Factory fixed overhead (20 hrs. $1.10 per hr.) $ 75.00 92.00 50.00 22.00 Standard cost $ 239.00 The $3.60 ($2.50 + $1.10) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 60,000 units per month. The following monthly flexible budget information is also available Operating Levels (% of capacity) 60% 36,000 720,000 65% 10% Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 39,000 780,000 42,000 840,000 Variable overhead Fixed overhead $ 1,800,000 1,950,000 $ 2,100,000 858,000 858,000 858,000 Total overhead $ 2,658,000$ 2,808,000 $2,958,000 During the current month, the company operated at 60% of capacity, employees worked 690,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costs $1,750,000 910,000 Total overhead costs $2,660,000 1. Compute the variable overhead spending and efficiency variances. Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) AH AVR AH SVR SH SVR Variable overhead spending variance Variable overhead efficiency variance Total variable overhead cost variance 2. 2. Compute the fixed overhead spending and volume variances Actual Fixed OH Cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) 3. Compute the controllable variance Controllable variance Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending variance Controllable variance