[The following information applies to the questions displayed below.] Sedona Company set the following standard costs for one unit of its product for this year. $ 66.00 46.00 Direct material (30 lbs. @ $2.20 per Ib.) Direct labor (10 hrs. @ $4.60 per hr.) Variable overhead (10 hrs. @ $3.00 per hr.) Fixed overhead (10 hrs. @ $1.50 per hr.) Total standard cost 30.00 15.00 $157.00 The $4.50 ($3.00 + $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 65,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) Flexible Budget 65% 70% 75% Budgeted output 42, 250 45,500 48,750 (units) Budgeted labor 422,500 455,000 (standard hours) 487,500 Budgeted overhead (dollars) Variable overhead $1,267,500 $1,365,000 $1,462,500 Fixed overhead 682,500 682,500 682,500 Total overhead $1,950,000 $2,047,500 $2,145,000 During the current month, the company operated at 65% of capacity, employees worked 400,000 hours, and the following actual overhead costs were incurred. Variable overhead $1,224,000 730,000 Fixed overhead costs Total overhead costs $1,954,000 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Variable overhead spending variance $ 24,000 Unfavorable Variable overhead efficiency variance 67,500 Favorable Fixed overhead spending variance 47,500 Unfavorable Fixed overhead volume variance x 48,750 X Unfavorable Controllable variance $ 52,750 X Unfavorable x Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for unfavorable, and no variance. Round "Rate per unit" to 2 decimal places.) Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) Standard hours Standard fixed rate 422,500 $ 1.50 $ 730,000 $ 682,500 $ 633,750 $ 47,500 $ 48,750 Fixed overhead spending variance $ 47,500 Unfavorable Fixed overhead volume variance 48,750 Unfavorable Total fixed overhead cost variance $ 96,250 Unfavorable Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. "Rate per unit" to 2 decimal places.) Actual Variable OH Cost Flexible Budget AH X AVR AH X SVR Standard Cost (VOH applied) SH SVR 422,500 $ 3.00 $ 1,267,500 400,000 X $ 3.06 400,000 X $ 3.00 X $ 1,224,000 $1,200,000 $ 24,000 $ 67,500 Variable overhead spending variance Variable overhead efficiency variance Total variable overhead cost variance $ 24,000 Unfavorable 67,500 Favorable $ 96,250 X Favorable