361 CHAPTER 7 STANDARD COSTING AND VARIANCE ANALYSIS 8. Fixed overhead costs variances. At a normal level of 24,000 direct labor hours, Tawi-Ta is used to plan and control overhead costs is: wi Corporation produces 8,000 units of product. A flexible budget which Flexible Budget Data 24,000 P 52,800 Overhead Rate per hr.20,000 Variable costs Fixed costs Total overhead costs 22,000 P 2.20 P 44,000 P 48,400 Required: 1. Compute the standard overhead rates, broken down into variable and fixed, using the following denominators: a. Normal capacity at 24,000 direct labor hours. b. Budgeted capacity of 20,000 direct labor hours. Assume, the company produced 7,000 units last period: a. What is the total standard hours? b. What is the volume variance? 2