Check My Work (1 remaining) eBook Exercise 8-17 Calculating Factory Overhead: Two Variances Munoz Manufacturing Co. normally produces 10,000 units of product X each month. Each unit requires 2 hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are $2.50 and $1.50 per direct labor hour, respectively. Cost and production data for May follow: Production for the month Direct labor hours used Factory overhead incurred for: Variable costs.... ..... ..... ................... Fixed costs.... ..... .... 9,000 units L500 hours $28,500 $52,000 Use "F" and "U" to designate favorable and unfavorable variances. Enter all amounts as positive numbers. a. Calculate the flexible-budge! variance. b. Calculate the production-volume variance. c. Was the total factory overhead under- or overapplied? By what amount?