Problem 16. GBX Inc.'s capacity for a month is 40,000 machine hours. Overhead is 40% variable and 60% fixed. During June 2011, GBX produced 3,500 units of its product and incurred 38,000 machine hours. Each unit of a product requires 12 machine hours. Unfavorable non-controllable variance for the month of June is P28,500. 16. What is the company's variable overhead rate? A. P23.75 B. P19.75 C. P14.25 D. P 9.50