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. 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 $ 66.00 46.00 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 Tavels of capacity) Flexible Budget 658 708 751 Dudgeted output (unita) 42,250 45,500 48,750 Budgeted labor (standard hours 422,500 455,000 487,500 Budgeted overhead (dollars) Variable overhead $1,267,500 $1,365,000 51,462,500 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 coats Fixed overhead costs Total overhead coats $1,224,000 730,000 $1,954,000 Exercise 21-17 Computing total variable and fixed overhead variances LO P4 (1) Compute the predetermined overhead application rate per hour for total overhead, variable overhead, and fixed overhead. Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total foxed overhead variances and classity each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour answers to 2 decimal places.) At 65% of Operating Capacity Standard DL Overhead Costs Hours Actual Results Applied Variance Fav/Unt. Variable overhead costs Fixed overhead costs Total overhead costs