Rahul Sedona Company set the following standard costs for one unit of its product for this year.Direct material (20 pounds @ $2.50 per pound)Direct labor (10 hours @ $22.00 per DLH)Variable overhead (10 hours @ $4.00 per DLH)Fixed overhead (10 hours @ $1.60 per DLH)Standard cost per unit$ 50.00220.0040.0016.00$ 326.00The $5.60 ($4.00 + $1.60) total overhead rate per direct labor hour (DLH) is based on a predicted activity level of 37,500units, which is 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget informationis available.Flexible BudgetBudgeted production (units)Budgeted direct labor (standard hours)Budgeted overheadVariable overheadFixed overheadTotal overheadOperating Levels (% of capacity)70%35,000350,000$ 1,400,000600,000$ 2,000,00075%37,500375,000$ 1,500,000600,000$ 2,100,00080%40,000400,000$ 1,600,000600,000$ 2,200,000During the current month, the company operated at 70% of capacity, direct labor of 340,000 hours were used, and thefollowing actual overhead costs were incurred.Actual variable overheadActual fixed overheadActual total overhead$ 1,375,000628,600$ 2,003,6001. Compute the total variable overhead variance and identify it as favorable or unfavorable.Note: 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.Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.

Name: Rahul Sedona Company set the following standard costs for one unit of
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Rahul Sedona Company set the following standard costs for one unit of its product for this year.Direct material (20 pounds @ $2.50 per pound)Direct labor (10 hours @ $22.00 per DLH)Variable overhead (10 hours @ $4.00 per DLH)Fixed overhead (10 hours