Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @$2.50 per pound) Direct labor (20 hours @ $4.80 per DLH)" Variable overhead (20 hours @ $2.30 per DLH) Fixed overhead (20 hours $1.20 per DLH) Standard cost per unit $ 75.00 96.00 46.00 24.00 $ 241.00 The $3.50 ($2.30 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 37,100 units, which is 70% of the factory's capacity of 53,000 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% 34,450 689,000 70% 75% 37,100 742,000 39,750 795,000 $1,828,500 890,400 $ 1,584,700 $ 1,706,600 890,400 890,400 $ 2,475,100 $2,597,000 $2,718,900 During the current month, the company operated at 65% of capacity, direct labor of 652,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,525,000 954,000 $ 2,479,000 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 Overhead Applied Actual Overhead Overhead Variance Variable overhead variance $ Fixed overhead variance 2.30 1.20 954,000