Could someone explain to me this exercise and solve it? Thanks in advance.

Based on expected production of 200,000 units, factory overhead costs budgeted for the year were:

Variable costs $180,000 $0.90 per unit

Total fixed costs $70,000 $0.35 per unit

Actual production achieved was 180,000 units. Overhead costs incurred were:

Variable costs $160,200 $0.89 per unit

Total fixed costs $72,000 $0.40 per unit

Required:

The predetermined overhead recovery rate per unit

The amount of over/under-applied overhead analysed into a spending (budget) variance and a capacity (volume) variance. Favourable (F) or Unfavourable (U) should be included in your variance calculation.

Show all the workings in your answers.