- 3 Erie Co. uses machine hours to apply standard overhead cost to production. The following data pertain to October doster hudget data Units 2,500 Total machine hours 100,000! Total variable overhead cost $ 250,000! Total fixed overhead cost **$ 50,000 Actual operating result Variable overhead cost incurred $265,000 Fixed overhead cost incurred +$ 54.000: Units manufactured 2,250) Total machine hours 96,000! . Required: 1. Compute the following: Predetermined variable MOH rate Predetermined fixed MOH rate Standard machine hour per unit 2. Compute the following variances using machine hours as the activity variable used to assign standard overhead costs to production a. Variable overhead spending variance Actual variable MOH Flexible budget based on inputs Variable MOH spending variance