Sedona Company set the following standard costs for one unit of its product for 2017.

Direct material (30 Ibs. @ $2.20 per Ib.)		$	66.00
Direct labor (20 hrs. @ $4.20 per hr.)			84.00
Factory variable overhead (20 hrs. @ $2.20 per hr.)			44.00
Factory fixed overhead (20 hrs. @ $1.10 per hr.)			22.00
Standard cost		$	216.00

The $3.30 ($2.20 + $1.10) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 68,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			55%				60%				65%
Budgeted output (units)			37,400				40,800				44,200
Budgeted labor (standard hours)			748,000				816,000				884,000
Budgeted overhead (dollars)
Variable overhead		$	1,645,600			$	1,795,200			$	1,944,800
Fixed overhead			897,600				897,600				897,600
Total overhead		$	2,543,200			$	2,692,800			$	2,842,400

During the current month, the company operated at 55% of capacity, employees worked 728,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,625,000
Fixed overhead costs			924,300
Total overhead costs		$	2,549,300

AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed Rate

1. Compute the variable overhead spending and efficiency variances.

2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. Compute the controllable variance.

SVRStandard Variable Rate SER # Standard Fixed Rate Compute the predtermined overhead application rate per hour for variable overhead. fixed ovetrhead and total ovethead 60% of capacity. Predetermined OH Rat Variableovethead costs 2)! Compute the total variable and tota fixed overhead variances and classf each as favorable or unfavorabile 11 At 55%; of veihea tandard D Act Unf cets SVRStandard Variable Rate SER # Standard Fixed Rate Compute the predtermined overhead application rate per hour for variable overhead. fixed ovetrhead and total ovethead 60% of capacity. Predetermined OH Rat Variableovethead costs 2)! Compute the total variable and tota fixed overhead variances and classf each as favorable or unfavorabile 11 At 55%; of veihea tandard D Act Unf cets