A compatry 's total overhead rate of $4.00 per direct labor hour (DI 1) is based on a predicted activity level of 4.030 units (65% of capacity! The standards for producing one unit are- Variable overhead. 20 hours a $2 70 per OLI, and Fixed overhead, 20 hours a $1 30 per Duff During the current period, the company operated at 60% capacity, and incurred actual variable overhead costs of $195.870 and aerial fixed overhead costs of $110,060. Flexible overhead budget information follows. 01 16/40 Operating Levels ($ of Flexible Overhead Budget capacity) budgeted production (units) 65% Budgeted direct labor (standard hours) 3,720 4,030 Budgeted overhead costs 74, 403 82, 623 variable overhead S 270, 680 Fixed overhead $ 217,620 124,780 184, 780 Total overhead $ 305,660 $ 327,403 1. Compute the total fixed overhead variance. Indicate whether it is favorable or unfavorable. 2. Compute the total variable overhead variance. Indicate whether it is favorable or unfavorable Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Standard Standard Actual Overhead Favorable or Overhead Variances at 60% Overhead Direct Labor Overhead Overhead Variance Unfavorable of Operating Capacity Rate per DLH Hours Applied Fixed overhead variance variable overhead variance