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my teacher has requested that the fixed overhead spending variance, fixed overhead volume variance as well as the variable overhead spending variance and variable overhead

my teacher has requested that the fixed overhead spending variance, fixed overhead volume variance as well as the variable overhead spending variance and variable overhead efficiency variance should be calculated and that prices were 10% higher than what is budgeted.

my question is do i apply this 10% increase to the hourly rates that are set or just added to the whole cost for eg fixed overhead was budgeted at $9636 do i just add 10% to that or do i add 10% to the hourly budgeted cost of $7.74 fixed overhead rate per hour? and same to variable overhead.

the hourly rate was $0.36 and with production totals $471 for the month do i add the 10% increase in cost (actual cost) to the hourly rate so it is now $0.40

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