[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 (15 Ibs. @ $4.20 per Ib.) Direct labor (10 hrs. $6.40 per hr.) Variable overhead (10 hrs. @ $3.70 per hr.) Fixed overhead (10 hrs. $1.50 per hr.) Total standard cost $ 63.00 64.00 37.00 15.00 $179.00 The $5.20 ($3.70 + $1.50) total overhead rate per direct labor hour is based on an expected operating level equal to 65% of the factory's capacity of 67,000 units per month. The following monthly flexible budget information is also available. 651 700 Operating Levels of capacity) 608 40,200 43,550 46,900 402,000 435,500 469,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Pixed overhead Total overhead $1,487, 400 653, 250 $ 2, 140,650 $1,611,350 653,250 $2,264,600 $1,735,300 653,250 $2,388,550 During the current month, the company operated at 60% of capacity, employees worked 382,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,425,000 725, 250 $2,150,250 OLLUGUVEICOU LUSS WIELUCU. Variable overhead costs Fixed overhead costs Total overhead costs $1,425,000 725,250 $2,150,250 (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 fixed overhead variances and classify 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 60% of Operating Capacity- Standard DL Overhead Costs Appliod Actual Results Hours Variance Fav/Unf. Variable overhead costs Fixed overhead costs Total overhead costs