Factory overhead for Elizabeth Company has been estimated as follows:

Fixed factory overhead.......................................................... ............................................. $50,000

Variable factory overhead.......................................................... ........................................... $105,000

Estimated direct labor hours.......................................................... ............................................... 25,000

Production for the month reached 110% of the budget, and actual factory overhead totaled $169,000.

Instructions:

1. Determine the amount of over or underapplied factory overhead.

2. Determine the flexible-budget and production-volume variances.