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Exercise 8-17 Calculating Factory Overhead: Two Variances Munoz Manufacturing Co. normally produces 10,000 units of...

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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 9,000 units Direct labor hours used. 18,500 hours Factory overhead incurred for: Variable costs $28,500 Fixed costs $52,000 Use "F" and "U" to designate favorable and unfavorable variances. Enter all amou nts as positive numbers. a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. $ c. Was the total factory overhead under- or overapplied

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