Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (15 Ibs. $4.20 per Ib.) Direct labor (10 hrs. $6.40 per hr. Pactory variable overhead (10 hrs. e $3.70 per hr. Factory fixed overhead (10 hrs. $1.50 per hr Standard cost 63.00 64.00 37.00 $179.00 The $5.20 ($3.70 $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 67,000 units per month. The following monthly flexible budget information is also available. ot in terel e at seaaec101 Plexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 60% 40,200 02,000 65% 43,550 6,900 469,000 $1,487,400 $1,611,350 $1,735,300 $2,140,650 $2,264,600 $2,3884 550 435,500 Variable overhead Fixed overhead Total overhead 653,250 653,250653 During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred. $1,425,000 725,250 ad costs Fixed overhead costs During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,425, 000 725,250 $2,150,250 AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate Exercise 21-18A Computation and interpretation of overhead spending, efficiency, and volume variances LO P4 1. Compute the variable overhead spending and efficiency variances Actual Variable OH Cost Flexible Budget 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Actual Fixed OH cost Required information 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH a 3. Compute the controllable variance. Next >