You work in the Strategy Analysis department of On-Call, a worldwide paging firm offering satellite-based digital communications through sophisticated pagers. On-Call is analyzing the possibility of acquiring AtlantiCom. an East Coast paging firm in Maine. AtlanfiComts latest quarterly report disclosed an unfavorable volume variance of $13 million. The engineering staff of On-Call, familiar with AtlantiCom's network. estimates that AtlantiCom has quarterly fixed overhead costs of 56.5 million that can deliver 800,000 message packets per quarter. A message packet is the industry standard of delivering a fixed amount of digital information within a given time period. In valuing AtlantiCom, senior management at On-Call wants to know whether AtlantiCom has excess capacity, and, if so, how much. 

Required: 

As a percentage of AtlanfiCom's current capacity of 800,000 message packets, estimate AtlanfiCom's over- or undercapacity last quarter. Assume that the quarterly fixed overhead costs of $6.5 million approximate budgeted fixed overhead and that actual and standard volumes are the same.