Sedona Company set the following standard costs for one unit of its product for this year. Direct material (30 pounds @ $2.00 per pound) Direct labor (20 hours @ $4.50 per DLH) Variable overhead (20 hours @ $2.90 per DLH) Fixed overhead (20 hours @ $1.20 per DLH) Standard cost per unit S 60.00 90.00 58.00 24.00 $ 232.00 The $4.10 ($2.90 + $1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40.950 units, which is 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is available. Operating Levels (% of Flexible Budget Budgeted production (units) Budgeted direct labor (standard hours) Budgeted overhead Variable overhead capacity) 60% 65% 37,800 40,950 70% 44,100 756,000 819,000 882,000 S $ S Fixed overhead Total overhead 2,192,400 2,375,100 2,557,800 982,800 982,800 982,800 $ S 3,175,200 3,357,900 3,540,600 During the current month, the company operated at 60% of capacity, direct labor of 726,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead $ 2,120,000 Actual fixed overhead 1,065,000 Actual total overhead 3,185,000 Exercise 23-27A (Algo) Computing total variable and fixed overhead variances LO P5 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. ---At 60% of Operating Capacity-... Standard Direct Labor Hours Overhead Rate Standard Direct Labor Hours Standard Overhead Actual Overhead Applied Favorable or Overhead Variance Unfavorable