OH variances Nelson Co. manufactures a product that requires 3.5 machine hours per unit. The variable and fixed overhead rates were computed using expected capacity of 288,000 units (produced evenly throughout the year) and expected variable and fixed overhead costs, respectively, of $4,032,000 and $7,056,000. In October, Nelson manufactured 23,800 units using 83,600 machine hours. October variable overhead costs were $330,000; fixed overhead costs were $589,000. a. What are the standard variable and fixed overhead rates? b. Compute the variable overhead variances. Note: Do not use a negative sign with your answer. c. Compute the fixed overhead variances. Note: Do not use a negative sign with your