Variable Overhead Variance. Clark Company developed the following variable overhead budget for expected production requiring 50,000 direct labor hours: Indiect materials. Indirect labor Ulites $25,000 37,500 12.500 Standard hours allowed for actual production were 46,000 direct labor hours. Actual costs were indirect materials. $24,000, indirect labor, $35.000; and utilities, $11,200. Determine the variable overhead variances, based on the flexible budget.