Olson uses a standard cost system and determines that it should take one hour of direct labor to produce one unit. The normal production capacity for this product is 105,000 units per year. The total budgeted overhead at normal capacity is $945,000 comprised of $367,500 of variable costs and 577,500 of fixed costs. Olson applies overhead based on direct labor hours. During the current year, Otson produced 72,600 units, worked 86,400 direct labor hours and incurred variable overhead costs of $296,020 and fixed overhead costs of $392,400. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate Compute the applied overhead for the year. Compute the total overhead variance