Units produced Direct labor hours Variable overhead costs Fixed overhead costs Actual 22,000 105,000 $91,000 $52,000 The variable overhead rate variance for March is: $3,000 favorable $7,000 favorable $7,000 unfavorable $3,000 unfavorable Budgeted 20,000 100,000 (based on a standard of 5 hours per unit) $.80 per labor hour $50,000 ($.50 per hour at budgeted capacity)

The variable overhead rate variance for March is: $3,000 favorable $7,000 favorable $7,000 unfavorable $3,000 unfavorable