Capacity levels Average Sales 85% Direct labor hours 28900 Q.5) The accountant of the company is asked to compute FOH rates based on (a) normal capacity (b) expected actual capacity (c) theoretical capacity and (d) average sales for the previous three years. The accountant prepared the following summary: Expected Actual 80% 27200 Normal Capacity 90% Theoretical Capacity 100% 30600 34000 Factory overhead Fixed $ 102000 $ 102000 $ 102000 $ 102000 Variable $136000 $ 144500 $ 153000 $ 170000 Total $238000 $ 246500 $ 255000 $ 272000 Compute: a) FOH rate per direct labor hour for each of the four capacity levels. b) The amount of over or under applied FOH for the other three levels if actual hours worked and actual FOH incurred were identical with the estimated hours and the estimated overhead of the expected actual capacity