Overhead Rate Calculation. Determine the variable and fixed factory overhead rates under the conditions of parts (a), (b), and

(c) below. Assume that the total variable factory overhead for the year is estimated to be $250,000 and the total fixed factory overhead is estimated to be $400,000. The basis for application is:

a. 50,000 direct labor hours.

b. 100,000 machine hours.

c. $500,000 direct labor cost.