The loan department of Metlock Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the department were mostly destroyed. The following data were salvaged from the ashes: Standard variable overhead rate per hour $10 Standard hours per application 2 Standard hours allowed 2,400 Standard fixed overhead rate per hour $6 Actual fixed overhead cost $15.600 Variable overhead budget based on standard hours allowed $24,000 Fixed overhead budget $15,600 Overhead budget variance $1.600 Unfavourable