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. @ $7.00 per hr.) Variable overhead (10 hrs. @ $4.10 per hr.) Fixed overhead (10 hrs. @ $1.70 per hr.) Total standard cost $ 48.00 70.00 41.00 17.00 $176.00 The $5.80 ($4.10 + $1.70) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 51,000 units per month. The following monthly flexible budget Information is also available. Operating Levels (t of capacity) 65% 75% 33, 150 35,700 38,250 70% Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead 331,500 357,000 382,500 Fixed overhead $1,359, 150 606, 900 $1,966,050 $1,463,700 606,900 $2,070, 600 $1,568, 250 606,900 $2,175, 150 Total overhead During the current month, the company operated at 65% of capacity, employees worked 320,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs $1,325,000 649, 650 $1,974, 650 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 Overhead Costs Hours Applied Actual Results Variance Fav./Unf. Variable overhead costs Fixed overhead costs Total overhead costs