Sedona Company set the following standard costs for one unit of its product for this year Direct material (20 lbs. 52.10 per Ib.) Direct labor (10 hrs. $8.80 per hr.) Variable overhead (10 hrs. $4.00 per hr.) Fixed overhead (10 hrs. $1.5e per he. ) Total standard cost 5.42.00 88.00 40.00 18.00 $188.00 The $5 80 ($4.00 - $180) 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 Operating tevels of capacity) Flexble budget 65% 75% Budgeted output (units) 45,500 40,000 52,500 Budgeted labor (standard hours) 455,000 490,000 525,000 Budgeted overhead (dollars) Variable overhead $1,820,000 $1,960,000 52,100,000 Fixed overhead 382,000 302.000 082,000 Total overhead $2,702,000 $2,042,000 52,082,000 70 Required information 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 electing for favorable, unfavorable, and no variance. Round "Rate per hour answers to 2 decimal places) At 65% of Operating capacity Standard DL Overhead Costs Hours Actual Results Variance Fav./Unl Applied Variable overhead costs bxed overhead costs Total overhead costs Actual Variable OH COM Flexibladet Standard Cost (VDH applied Book int 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 sele unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed On (Fixed Budgeted Standard Cost (FOli applied) Required 1 Required 2 Required's Compute the controllable variance. (Indicate the effect of each variance by sele variance.) Controllable Variance Controllable variance