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

Direct material (20 Ibs. @ $4.10 per Ib.)		$	82.00
Direct labor (15 hrs. @ $6.00 per hr.)			90.00
Variable overhead (10 hrs. @ $3.60 per hr.)			36.00
Fixed overhead (10 hrs. @ $1.60 per hr.)			16.00
Total standard cost		$	224.00

The $5.20 ($3.60 + $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			65%				70%				75%
Budgeted output (units)			42,900				46,200				49,500
Budgeted labor (standard hours)			429,000				462,000				495,000
Budgeted overhead (dollars)
Variable overhead		$	1,544,400			$	1,663,200			$	1,782,000
Fixed overhead			739,200				739,200				739,200
Total overhead		$	2,283,600			$	2,402,400			$	2,521,200

During the current month, the company operated at 65% of capacity, employees worked 410,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,501,000
Fixed overhead costs			784,200
Total overhead costs		$	2,285,200

Sedona Company set the following standard costs for one unit of its product for this year. Direct material (20 Ibs. @ $4.10 per Ib.) Direct labor (15 hrs. @ $6.00 per hr.) Variable overhead (10 hrs. @ $3.60 per hr.) Fixed overhead (10 hrs. @ $1.60 per hr.) Total standard cost $ 82.00 90.00 36.00 16.00 $224.00 The $5.20 ($3.60 + $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 66,000 units per month. The following monthly flexible budget information is also available. Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Operating Levels (% of capacity) 65% 70% 75% 42,900 46,200 49,500 429,000 462,000 495,000 $1,544,400 739,200 $2,283,600 $1,663,200 739,200 $2,402,400 $1,782,000 739,200 $2,521,200 Total overhead During the current month, the company operated at 65% of capacity, employees worked 410,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs $1,501,000 784,200 $2,285,200 Total overhead costs (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 65% of Operating Capacity-------- Standard DL Hours Overhead Costs Applied Actual Results Variance Fav./Unf. Variable overhead costs Fixed overhead costs Total overhead costs