[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 (20 lbs. @ $2.60 per Ib.) Direct labor (10 hrs. @ $8.00 per hr.) Variable overhead (10 hrs. $4.40 per hr.) Fixed overhead (10 hrs. @ $2.00 per hr.) Total standard cost $ 52.00 80.00 44.00 20.00 $196.00 The $6.40 ($4.40 + $2.00) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 54,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) 70% 75% 80% 37,800 40,500 43,200 378,000 405,000 432,000 Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) Variable overhead Fixed overhead Total overhead $1,663,200 810,000 $2,473,200 $1,782,000 810,000 $2,592,000 $1,900,800 810,000 $2,710,800 During the current month, the company operated at 70% of capacity, employees worked 365,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,625,000 854,000 $2,479,000 During the current month, the company operated at 70% of capacity, employees worked 365,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,625,000 854,000 $2,479,000 (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 70% of Operating Capacity-... Standard DL Overhead Costs Actual Results Variance Fav./Unt. Hours Applied Variable overhead costs Fixed overhead costs Total overhead costs Required information JR = Standard Variable Rate Compute the variable overhead spending and efficiency variances. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. Compute the controllable variance. 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, unf "Rate per unit" to 2 decimal places.) Flexible Budget Standard Cost (VOH applied) Actual Variable OH Cost AH X AVR 365,000 $ 0 0 Required 2 > COD Prev DS of 17 Next