Stal Company prepared the following information for 19X1 representing two different volumes:

Factory overhead was applied based on the 85 percent capacity level; however, 28,000 machinehours were used for the period.
Required:

a. Account for the difference in factory overhead rates between the two capacity levels.

b. If actual factory overhead were equal to the budgeted amount for the attained capacity, what is the total overhead variance for the year and what kind of variance is it?

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Machine-hours.. Variable factory overhead Fixed factory overhead Total factory overhead rate per machine-hour... Percent of Capacity 70 Percent 85 Percent 28,000 $110,600 34,000 $134,300 $119,000 $119,000 8.20 $ 7.45