Blue Spruce Company produces one product, a putter called PAR-putter. Blue Spruce uses a standard cost system and determines that it should take one hour of direct labor to produce one PAR-putter. The normal production capacity for the putter is 100,000 units per year. The total budgeted overhead at normal capacity is $504,000 comprised of $202,000 of variable costs and $302,000 of fixed costs. Blue Spruce applies overhead on the basis of direct labor hours. During the current year, the company produced 85,200 putters, paid employees for 89,100 direct labor hour5, and incurred variable overhead costs of $164,000 and fixed overhead costs of $302,000. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answer to 2 decimal places, es. 52.75.) Variable Overhead Rate $ Fixed Overhead Rate Compute the applied overhead for Blue Spruce for the year. Compute the applied overhead for Blue Spruce for the year. Applied Overhead Compute the total overhead variance. Identify whether the variance is favorable or unfavorable. Total Overhead Variance