Calculating Factory Overhead The standard capacity of a factory is 8,000 units per month. Cost and production data follow: Standard application rate for fixed overhead. $0.50 per unit Standard application rate for variable overhead. $1.50 per unit Production Month 1. 7,400 units Production Month 2. 8,200 units Actual factory overhead Month 1.. $15,100 Actual factory overhead Month 2.. $17,200 Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month. Use F and U to designate favorable and unfavorable variances. If an amount is zero, enter 0 and use N/A if the variance