Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours @ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit $51.00 97.00 49.00 20.00 $217.00 The $6.90 ($4.90+ $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300 units, which is 70% of the factory's capacity of 59.000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Operating Levels (% of capacity) 65% 38,350 383,500 $ 1,879,150 826,000 $ 2,705,150 70% 41,300 413,000 $ 2,023,700 826,000 $ 2,849,700 75% 44,250 442,500 $ 2,168,250 826,000 $ 2,994,250 During the current month, the company operated at 65% of capacity, direct labor of 365,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead: $ 1,816,000 899,050 $ 2,715,050 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) -At 65% of Operating Capacity- Standard Direct Labor Hours Overhead Rate Favorable/Unfavorable Standard Direct Labor Hours Standard Actual Overhead Applied Overhead Overhead Variance Variable overhead variance Fixed overhead variance $ 4.90 2.00 899,050