ABC Inc produces one product and the company uses a standard cost system and determines that it should take one hour of direct labor to produce one unit. The normal production capacity is 150,000 units per year. The total budgeted overhead at normal capacity is 600,000 dollars comprised of 240,000 of variable costs and 360,000 of fixed costs. Overhead is applied on the basis of direct labor hours. During the current year, the company produced 140,000 units worked 148,000 direct labor hours, and incurred variable overhead costs of 220,000 and fixed overhead costs of 360,000.INSTRUCTIONS: Compute the total overhead variance and note favorable or unfavorable.