Use the following information for the Exercises below. [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. $3.70 per Ib.) Direct labor (10 hrs. $8.80 per hr.) Variable overhead (10 hrs. $4.20 per hr.) Fixed overhead (10 hrs. $2.30 per hr.) Total standard cost $ 74.00 88.00 42.00 23.00 $227.00 The $6.50 ($4.20 + $2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 62,000 units per month. The following monthly flexible budget information is also available. Operating Levels of capacity) Flexible Budget 655 701 756 Budgeted output (units) 40,300 43,400 46,500 Budgeted labor (standard hours) 403,000 434,000 465,000 Budgeted overhead (dollars) Variable overhead $1,692,500 $1,822,800 $1,953,000 Fixed overhead 998, 200 998, 200 998, 200 Total overhead $2,690,800 $2,821,000 $2,951,200 During the current month, the company operated at 65% of capacity, employees worked 389,000 hours, and the following actual overhead costs were incurred. Variable overhead conta Fixed overhead coats Total overhead coats $1,650,000 1.040,000 $2,690,000 Exercise 21-18A Computing and interpreting overhead spending, efficiency, and volume variances LO P5 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 foved 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: Required 2 Required Compute the variable overhead spending and efficiency variances. (Indicate the effect of each vartance by selecting for favorable, untavorable, and no variance. Hound ate per unit to 2 decimal places.) Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied Required 2 > 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 fixed overhead spending and volume 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 unit to 2 decimal places.) Achilled OH cost Pued OH (Flaed Budgeted) Standard Cost (FOH apped Required information 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 controllable variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable Variance Controllable variance