A company budgeted for 1,000 units, and produced 1, 100 instead. Standard direct labor hours for 1,000 units are 50. Standard direct labor hours for 1, 100 units are 55. Fixed factory overhead is applied at the pre-determined rate of $8 per direct labor hour. Actual foxed factory overhead is $400. What is the amount and nature of the fixed factory overhead volume variance? $ 40 under-applied $0, neither under or over-applied $40 over-applied $400 under-applied Ace Corporation makes two types of bandages: elastic and cotton. Elastic bandages are budgeted for 3,000 direct labor hours of production for the year: cotton bandages are budgeted for 3,000 direct labor hours of production for the year. Total factory overhead is budgeted for the year at $60,000. The single plant-wide factory overhead rate is $20 per direct labor hour