The predetermined overhead rate for Lithian Company is $7, comprised of a variable overhead rate of $4 and a fixed rate of $3. The amount of budgeted overhead costs at normal capacity of $210,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $7. Actual overhead for June was $21,500 variable and $17,350 fixed, and standard hours allowed for the product produced in November was 5,000 hours. The total overhead variance is $8,550 unfavorable $3,550 unfavorable $3,550 favorable $8,550 favorable