The predetermined overhead rate for Marigold Corp. is $4, comprised of a variable overhead rate of $2 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $120000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $4. Actual overhead for June was $7000 variable and $6000 fixed, and 1700 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is O $600 F O $1700 F. $600 U. $1700 U.