Peters Company uses a flexible budget system and prepared the following information for 19X1: nhy7 Percent of

Peters Company uses a flexible budget system and prepared the following information for 19X1: nhy7

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Percent of capacity. 80% 90% Direct labor hours. 24,000 Variable factory overhead. $48,000. 27,000 $54,000 Fixed factory overhead $108,000 $108,000 Total factory overhead application rate per direct labor hour... $6.50 $6.00 Peters operated at 80% of capacity during 19X1, but applied factory overhead based on the 90% capacity level. The actual factory overhead was equal to the budgeted amount for the attained capacity. A process cost accumulation system is used to accumulate costs. Required: Compute the overall factory overhead variance.