Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 Ibs. @ $2.19 per Ib.) Direct labor (10 hrs. @ $8.80 per hr.) Variable overhead (10 hrs. @ $4.00 per hr.) Fixed overhead (10 hrs. @ $1.80 per hr.) Total standard cost $ 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) Variable overhead Fixed overhead Total overhead Operating Levels of capacity) 65% 70% 75% 45,500 49,000 52,500 455,000 490,000 525,000 $1,820.000 882,000 $2,702,000 $1,960,000 882,000 $2,842,000 $2,180,000 882,000 $2,982,999 N During the current month, the company operated at 65% of capacity, employees worked 435,000 hours and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,765,000 943,000 $2,708,000 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs earch O FLEXLUXE puuger Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead DIA 45,500 455,000 40 49,000 499,000 OM 52,500 525,000 $1,820,000 882,080 $2,702,000 $1,960,000 882, ese $2,842,000 $2,100,000 882,000 $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. Variable overhead costs Fixed overhead costs Total overhead costs $1,765,000 943,000 $2,708,000 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead and fixed overhead Predetermined OH Rate Variable 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) LAt 65% of Operating capacity Standard DL Overhead Costs Actual Results Variance Hours Applied Fav./Unt. Variable overhead costs Fixed overhead costs Total overhead costs earch O ET