Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (20 Ibs. $3.30 per Ib.) Direct labor (15 hrs. $6.00 per hr.) Factory variable overhead (15 hrs. $2.80 per hr.) Factory fixed overhead (15 hrs. $1.20 per hr.) 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 rating Levels (% of capacit 75% Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 70% 40,600 80% 43,500 652,500 46,400 696,000 609,000 Variable overhead Fixed overhead Total overhead $1,705,200 $1,827,000 $1,948,800 783,000 783,000 $2,488,200 $2,610,000 $2,731,800 783,000 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 AH-Actual Hours SH = Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 75% of capacity 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. -At 70% of Operating Capacity Standard DL Overhead Actual Costs AppliedResults Variance Fav./Unf Hours Variable overhead costs Fixed overhead costs Total overhead costs