World Company expects to operate at 80% of its productive capacity of 50,000 units per month. Al this planned level the company expects to use 25.000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. Al the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305.000 actual overhead and 22,000 actual labor hours while producing 35,000 units. Compute the overhead application rate for total overhead. Compute the total overhead variance