The predetermined overhead rate for Sheffield Corp. is $4, comprised of a variable overhead rate of $2 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $120000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $4. Actual overhead for June was $8400 variable and $5100 fixed, and 2000 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is O $2500 U. O $2500 F O $2000 F O $2000 U.