Sedona Company set the following standard costs for one unit of its product for 2017.

Direct material (20 Ibs. @ $2.10 per Ib.)		$	42.00
Direct labor (10 hrs. @ $8.80 per hr.)			88.00
Factory variable overhead (10 hrs. @ $4.00 per hr.)			40.00
Factory fixed overhead (10 hrs. @ $1.80 per hr.)			18.00
Standard cost		$	188.00

The $5.80 ($4.00 + $1.80) 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.

		Operating Levels (% of capacity)
Flexible Budget			65%				70%				75%
Budgeted output (units)			45,500				49,000				52,500
Budgeted labor (standard hours)			455,000				490,000				525,000
Budgeted overhead (dollars)
Variable overhead		$	1,820,000			$	1,960,000			$	2,100,000
Fixed overhead			882,000				882,000				882,000
Total overhead		$	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		$	1,765,000
Fixed overhead costs			943,000
Total overhead costs		$	2,708,000

AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed 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.