Candy Company expects to operate at 80% of its productive capacity of 100,000 units per month. At this planned level, the company expects to use 50,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $300,000 variable overhead cost. In the current month, the company incurred $325,000 actual overhead while producing 75,000 units. (8 pts)

a. Computer the predetermined standard overhead rate Predetermined OH Rate Variable OH Costs Per DL Hour Fixed OH Costs Per DL Hour Total OH Costs Per DL Hour

b. What is the total overhead variance?