Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @ $2.50 per pound) Direct labor (20 hours @ $4.60 per DLH) Variable overhead (20 hours @ $2.50 per DLH) Fixed overhead (20 hours @ $1.10 per DLH) Standard cost per unit $ 75.00 92.00 50.00 22.00 $ 239.00 The $3.60 ($2.50 + $1.10) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 39,000 units, which is 65% of the factory's capacity of 60,000 units per month. The following monthly flexible budget information is available. Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead Fixed overhead Total overhead Operating Levels (% of capacity) 60% 65% 70% 36,000 39,000 42,000 720,000 780,000 840,000 $ 1,800,000 $ 1,950,000 $ 2,100,000 858,000 858,000 858,000 $ 2,658,000 $ 2,808,000 $ 2,958,000 During the current month, the company operated at 60% of capacity, direct labor of 690,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead Actual fixed overhead Actual total overhead $ 1,750,000 910,000 $ 2,660,000 Exercise 8-28A (Algo) Detailed overhead variances LO P5 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. Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) $ 0 0 Compute the fixed overhead spending and volume variances. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) $ 0 0 Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Controllable Variance Controllable variance