Calculating factory overhead The normal capacity of a manufacturing plant is 7,500 units per month. Fixed overhead at this volume is $10,000, and variable overhead is $15,000. Additional data follow: E7- ?04 Month 1 7,875 $24,500 Month 2 6,750 $25,000 a. Calculate the amount of factory overhead allowed for the actual levels of production. b. Compute the overhead application rate per unit at the vari ous levels of production. (Round to the nearest whole cent.)