Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 lbs. $3.70 per Ib.) Direct labor (10 hrs. $8.80 per hr.). Variable overhead (10 hrs. $4.20 per hr.) Fixed overhead (10 hrs. $2.30 per hr.) Total standard cost $ 74.00 88.00 42.00 23.00 $227.00 The $6.50 ($4.20 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 62,000 units per month. The following monthly flexible budget information is also available. Operating Levels (of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead 658 70% 758 40,300 403,000 43,400 434,000 46,500 465,000 $1,692,600 998,200 $2,690,800 $1,822,800 998,200 $2,821,000 $1,953,000 998,200 $2,951,200 During the current month, the company operated at 65% of capacity, employees worked 389,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,650,000 1,048,000 $2,698,000 Required information (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Varjable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) Standard DL Hours At 65% of Operating Capacity-------- Overhead Costs Applied Actual Results Variance Fav./Unf. Variable overhead costs Fixed overhead costs. Total overhead costs Complete this question by entering you Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Rour "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied)) Required 1 Required 2 > ances Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favon unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed CH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) omnure the riven overnean enonninn ann voima variancec ann ciacemu oarn ac raunranie or untavaranie Required information Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required]3 Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Controllable variance. Required 2 Required 3 S