Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 Ibs. @ $3.30 per Ib.) Direct labor (15 hrs. @ $6.00 per hr.) Variable overhead (15 hrs. @ $2.80 per hr.) Fixed overhead (15 hrs. @ $1.20 per hr.) Total standard cost $ 66.00 90.00 42.00 18.00 $216.00 The $4.00 ($2.80 + $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 58,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 70% 75% 80% 40,600 43,500 46,400 609,000 652,500 696,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,705,200 783,000 $2,488,200 $1,827,000 783,000 $2,610,000 $1,948,800 783,000 $2,731,800 During the current month, the company operated at 70% of capacity, employees worked 575,000 hours, and the following actual overhead costs were incurred During the current month, the company operated at 70% of capacity, employees worked 575,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,624,000 866,000 $2,490,000 AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable 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. 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. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 0