labor hours should be used for every oven produced. The normal production volume is 100,000 units. The budgeted overhead for the coming year is as follows: Plimpton applies overhead on the basis of direct labor hours. Required: Standard fixed overhead rate $ per direct labor hour Standard variable overhead rate per direct labor hour 2. Compute the applied fixed overhead and the applied variable overhead. Use the application rates from part (1) in your calculations. Fixed $ Variable $ What is the total fixed overhead variance? $ What is the total variable overhead variance? $ 3. Break down the total fixed overhead variance into a spending variance and a volume variance. 4. Compute the variable overhead spending and efficiency variances