Variable overhead costs Fixed overhead costs Total overhead costs $1,625,000 924,300 $2,549,300 AH = Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 60% of capacity. Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs Fav./Unf. (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. --------At 55% of Operating Capacity-------- Standard DL Overhead Actual Variance Hours Costs Applied Results Variable overhead costs Fixed overhead costs Total overhead costs