World Company expects to operate at 60% of its productive capacity of 32,000 units per month. At this planned level, the company expects to use 12,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hours per unit. At the 60% capacity level, the total budgeted cost includes $36,000 fixed overhead cost and $120,000 variable overhead cost. In the current month, the company incurred $116,000 actual overhead and 5,760 actual labor hours while producing 9,400 units. (Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.)

(1) Compute the predetermined standard overhead rate for total overhead. Predetermined OH rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total overhead variance. --------Actual production 9,400 units --- Standard Overhead DL Hours costs applied Actual ! results Variance Fav./Unf. Variable overhead costs Fixed overhead costs Total overhead costs