Required information {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 Ibs. $2.10 per Ib.) Direct labor (10 hrs. $8.80 per hr.) Variable overhead (10 hrs. $4.00 per hr.) Fixed overhead (10 hrs. $1.80 per hr.) Total standard cost $ 42.00 88.00 40.00 18.00 $288.00 The $5.80 ($4.00 $180) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70,000 units per month. The following monthly flexible budget information is also available. Plexible Budget Budgeted output (units) Tradgeted labor standard hours) Budgeted overhead dollars) Variable overhead Fixed overhead Total overhead Operating Levels of capacity) 650 701 758 45,500 49,000 52,500 455,000 490.000 525,000 51,820.000 $1.960,000 $2,100,000 382.000 BR2,000 882,000 $2,702,000 $2,842.000 $2,982,000 During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred Variable overhead costs Fixed overhead costo Total overhead coat $1,765,000 942.000 $2,700.000 AH-Actual Hours SH Standard Hours AVR - Actual Variable Rate SVR Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. 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, unfavorable, and no variance. Round Rats per unit to 2 decimal places) Variable OH Cost Flexible Budget Standard Coat (VOH applied AH Actual Hours SH - Standard Hours AVR = Actual Variable Rate SVR Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable 3. Compute the controllable variance. Complete this question by entering your answers in the tabs below. Required: ured2 Required Compute the foxed overhead spending and volume variances and classify each as favorable or unfavorable (Indicate the effect of each variance by selecting for favorab utvecase, and no variance. Roundat per to 2 decimal places) Actual ed OH cost Fixed OH (Fixed Budgeted Standard Cost FOH applied) AH - Actual Hours SH - Standard Hours AVR - Actual Variable Rate SVR - Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. 3. Compute the controllable variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Rebuired 3 Compute the controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) Controllable Variance Controllable variance
