Exercise 8-19 Computation of total overhead rate and total overhead variance LO P3 World Company expects to operate at 60% of its productive capacity of 28,000 units per month. At this planned level, the company expects to use 7,560 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hours per unit. At the 60% capacity level, the total budgeted cost includes $22.680 fixed overhead cost and $60,480 varlable overhead cost. In the current month, the company Incurred $63,920 actual overhead and 7,130 actual labor hours whlle producing 11,600 units. (Do not round Intermediate calculatlons. Round "OH costs per DL hour" to 2 declmal places.) (1) Compute the predetermined standard overhead rate for total overhead. Predetermined OH rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total overhead variance. Actual production 11,600 units Standard Overhead Actual DL Hours costs applied results Variance Fav./Unf. Variable overhead costs Fixed overhead costs Total overhead costs