The $5.80($4.10+$1.70) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 51,000 units per month. The following monthly flexible budget information is also available. During the current month, the company operated at 65% of capacity, employees worked 320,000 hours, and the following actual overhead costs were incurred. 1. Demonstrate how the predetermined overhead rates were determined (separate fixed and variable components) 2. Compute the fixed and variable overhead (expanded) variances