Sedona Company set the following standard costs for one unit of its product for 2017. Direct material (30 Ibs. $2.20 per Ib.) Direct labor (20 hrs. $4.00 per hr.) 66.00 80.00 Factory variable overhead (20 hrs. @ $2.20 per 44.0 hr.) Factory fixed overhead (20 hrs. e $1.10 per hr.) Standard cost 22.80 $212.00 The $3.30 ($2.20 $1.10) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 52,000 units per month. The following monthly exible budget information is also available. Che Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overheacd (dollars) 68% 31,200 65% 33,800 70% 36,400 728,000 624,800 676,000 Variable overhead Fixed overhead Total overhead $1,372,80e $1,487,200 $1,601,600 743,600743,60 $2,116,40e $2,230, 800 $2,345,200 743,600743,68e During the current month, the company operated at 60% of capacity, employees worked 591,000 hours, and the following actual overhead costs were incurred. Variable overhead costs $1,326,000 Fixed overhead costs 798,000 Total overhead costs $2,124,000 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 a 65% 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 Actual Hours Costs Applied Results Standard DL Overhead Variance Fav./Unf Variable overhead costs Fixed overhead costs Total overhead costs . Compute the variable overhead spending and efficiency variances. Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) . 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 applied) 3. Compute the controllable variance. Controllable Variance Controllable variance