At the beginning of the year, Sheila estimated that her company would produce 504 pairs of Doc Martins at 42 per month. Fixed costs for the year were estimated at $599,760, with variable overhead costs estimated at $600 per unit. During May, the company produced 40 units incurring $76,000 of actual overhead.

What is the standard overhead rate used to apply overhead to the units produced?

Calculate the overhead variance for July; is it favorable or unfavorable?

Calculate the overhead volume variance; is it favorable or unfavorable?