Sedona Company set the following standard costs for one unit of its product for this year. $ 51.00 97.00 Direct material (15 pounds @ $3.40 per pound) Direct labor (10 hours @ $9.70 per DLH) Variable overhead (10 hours @ $4.90 per DLH) Fixed overhead (10 hours @ $2.00 per DLH) Standard cost per unit 49.00 20.00 $ 217.00 The $6.90 ($4.90 + $2.00) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 41,300 units, which is 70% of the factory's capacity of 59.000 units per month. The following monthly flexible budget information is available. Operating Levels (% of capacity) 65% 70% Flexible Budget 75% Budgeted production (units) 38,350 383,500 41,300 413,000 44,250 442,500 Budgeted direct labor (standard hours) Budgeted overhead Variable overhead $ 1,879,150 826,000 $ 2,023,700 826,000 $ 2,168,250 826,000 Fixed overhead Total overhead $ 2,705,150 $ 2,849,700 $ 2,994,250 During the current month, the company operated at 65% of capacity, direct labor of 365,000 hours were used, and the following actual overhead costs were incurred. Actual variable overhead: Actual fixed overhead $ 1,816,000 899,050 Actual total overhead $ 2,715,050 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (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. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) At 65% of Operating Capacity.......... Standard Direct Labor Hours Overhead Rate Favorable/Unfavorable Standard Direct Labor Hours Standard Actual Overhead Applied Overhead Variable overhead variance S 4.90 Fixed overhead variance 2.00 899,050 Overhead Variance