361 CHAPTER 7 TANDARD COSTING AND VARIANCE ANALYSIS acsts varlances. At a normal level of 24,000 direct labor hours, toration produces 8,000 units of product. A flexible budget which odu is used to plan and control overhead costs is Flexible Budget Data Direct labot hours 24,000 P 52,800 Overhead Rate per hr. Variable costs Fixed costs Total overhead costs 22,000 20,000 P 44,000 P 2.20 P 48,400 P134.000 P138.400 P142.800 Required: 1. Compute the standard overhead rates, broken down into variable and fixed, using the following denominators: a. Normal capacity at 24,000 direct labor hours. b. Budgeted capacity of 20,000 direct labor hours. 2. Assum e, the company produced 7,000 units last period: a. What is the total standard hours? b. What is the volume variance