Budget overhead and variance analysis. In June, the idle capacity variance of Company ABC was zero and the spending variance was $6,000 unfavorable. In July, the idle capacity variance was $8,000 unfavorable, but the spending variance was zero. In June, the actual overhead expense was $70,000 for an output of 8,000 tons. Julys expense was $56,000 for an output of 6,000 tons. In August, output was 9,000 tons and the actual overhead expense was $71,000.

Required:

1. Factory overhead budgeted (estimated for 9,000 tons)
2. Factory overhead applied in August.
3. Variances for August.

NOTE: CLEAR AND UNDERSTANDABLE CALCULATION/STEPS will be highly appreciated.