EXERCISE Case 1 Normal annual capacity for Sony Company is 40.000 machine hours, with fixed factory overhead budgeted as $20.000 and an estimated variable factory overhead rate of $3 per hour. During July, actual production required 3.000 machine hours, with a total factory overhead of $12.000. Required: Compute (1) the applied factory overhead and (2) the over- or underapplied amount for July