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Required information [The following information applies to the questions displayed below.]...

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Accounting

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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. The $5.80($4.00+$1.80) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 49,00 units, which is 70% of the factory's capacity of 70,000 units per month. The following monthly flexible budget informatio is available. During the current month, the company operated at 65% of capacity, direct labor of 435,000 hours were used, and the following actual overhead costs were incurred. 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.)

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