The predetermined overhead rate is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8,900 variable and $12,000 fixed, and 1,500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $5,900 Unfavorable $1,600 Unfavorable $700 Unfavorable $1,600 Favorable $5,900 Favorable \$700 Favorable