Problem 16 Factory Overhead Variance Wonder uses the following equation to budget its factory overhead: FOH = P1,200,000+ P2 per direct labor hour Wonder has budgeted 600,000 direct labor hours for the year. Actual results were 640,000 direct labor hours and P2,498,000 total factory overhead. Required: 1. Compute the predetermined factory overhead rate. 2. Compute the total factory overhead applied for the year. 3. Compute the over or under-applied factory overhead. 4. Compute the budget overhead variance 5. Compute the idle capacity variance.