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[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.
[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. The $4.10($2.90+$1.20) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 40,950 units, which is 65% of the factory's capacity of 63,000 units per month. The following monthly flexible budget information is avallable. During the current month, the company operated at 60% of capacity, direct labor of 726,000 hours were used, and the following actual overhead costs were incurred. AH= Actual Hours SH= Standard Hours AVR = Actual Variable Rate SVR = Standard Varlable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances. 3. Comoute the controllable varlance. \begin{tabular}{|c|c|c|} \hline \multicolumn{2}{|c|}{ Actual Varlable OH Cost } \\ \hline AH & AH & AVR \\ \hline 726,000( & x & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Standard Cost (VOH applled } \\ \hline SH Q & x & SVR \\ \hline & x & \\ \hline & & \\ \hline & \\ \hline \end{tabular} \& Required 1 Required 3 > Compute the controllable variance. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.)
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