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

Direct material (30 Ibs. @ $2.20 per Ib.)		$	66.00
Direct labor (20 hrs. @ $4.00 per hr.)			80.00
Variable overhead (20 hrs. @ $2.20 per hr.)			44.00
Fixed overhead (20 hrs. @ $1.10 per hr.)			22.00
Total standard cost		$	212.00

The $3.30 ($2.20 + $1.10) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 52,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			60%				65%				70%
Budgeted output (units)			31,200				33,800				36,400
Budgeted labor (standard hours)			624,000				676,000				728,000
Budgeted overhead (dollars)
Variable overhead		$	1,372,800			$	1,487,200			$	1,601,600
Fixed overhead			743,600				743,600				743,600
Total overhead		$	2,116,400			$	2,230,800			$	2,345,200

During the current month, the company operated at 60% of capacity, employees worked 591,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,326,000
Fixed overhead costs			798,000
Total overhead costs		$	2,124,000

(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.) --At 60% of Operating Capacity- Standard DL Overhead Costs Actual Results Hours Fav./Unf. Applied Variance Variable overhead costs Fixed overhead costs Total overhead costs