Sonic Company set the following standard costs for one unit of its product for 2011.

Direct material (20 Ibs. @ $2.50 per Ib.)		$	50.00
Direct labor (15 hrs. @ $8.00 per hr.)			120.00
Factory variable overhead (15 hrs. @ $2.50 per hr.)			37.50
Factory fixed overhead (15 hrs. @ $0.50 per hr.)			7.50
Standard cost		$	215.00

The $3.00 ($2.50 + $0.50) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available.

		Operating Levels (% of capacity)
			70%				75%				80%
Budgeted output (units)			35,000				37,500				40,000
Budgeted labor (standard hours)			525,000				562,500				600,000
Budgeted overhead (dollars)
Variable overhead		$	1,312,500			$	1,406,250			$	1,500,000
Fixed overhead			281,250				281,250				281,250
Total overhead		$	1,593,750			$	1,687,500			$	1,781,250

During the current month, the company operated at 70% of capacity, employees worked 500,000 hours, and the following actual overhead costs were incurred.

Variable overhead costs		$	1,267,500
Fixed overhead costs			285,000
Total overhead costs		$	1,552,500

(1)	Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 75% of capacity (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Variable cost	Fixed cost	Total cost
Predetermined overhead rate per hour	$	$	$

(2)

Compute the variable and fixed overhead variances. (Input all amounts as a positive value. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Variable overhead cost variance	$	(Click to select)NoneFU
Fixed overhead cost variance	$	(Click to select)NoneFU