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

Direct material (15 Ibs. @ $3.20 per Ib.)		$	48.00
Direct labor (10 hrs. @ $9.50 per hr.)			95.00
Variable overhead (10 hrs. @ $4.60 per hr.)			46.00
Fixed overhead (10 hrs. @ $2.20 per hr.)			22.00
Total standard cost		$	211.00

The $6.80 ($4.60 + $2.20) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 56,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
Flexible Budget			70%				75%				80%
Budgeted output (units)			39,200				42,000				44,800
Budgeted labor (standard hours)			392,000				420,000				448,000
Budgeted overhead (dollars)
Variable overhead		$	1,803,200			$	1,932,000			$	2,060,800
Fixed overhead			924,000				924,000				924,000
Total overhead		$	2,727,200			$	2,856,000			$	2,984,800

During the current month, the company operated at 70% of capacity, employees worked 371,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,716,000
Fixed overhead costs			1,015,200
Total overhead costs		$	2,731,200

Sedona Company set the following standard costs for one unit of its product for this year. Direct material (15 Ibs. @ $3.20 per Ib.) Direct labor (10 hrs. @ $9.50 per hr.) Variable overhead (10 hrs. @ $4.60 per hr.) Fixed overhead (10 hrs. @ $2.20 per hr.) Total standard cost $ 48.00 95.00 46.00 22.00 $211.00 The $6.80 ($4.60 + $2.20) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 56,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 70% 75% 80% 39,200 42,000 44,800 392,000 420,000 448,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,803,200 924,000 $2,727,200 $1,932,000 924,000 $2,856,000 $2,060,800 924,000 $2,984,800 During the current month, the company operated at 70% of capacity, employees worked 371,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,716,000 1,015, 200 $2,731,200 (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 70% of Operating Capacity ------ Standard DL Overhead Costs Actual Results Variance Fav./Unf. Hours Applied Variable overhead costs $ 9,400 Unfavorable Fixed overhead costs Total overhead costs