The normal capacity of a factory is 8,000 units per month. Cost and production data follow:

Standard application rate for fixed overhead . . . . . . . . . . . . ... $0.50 per unit

Standard application rate for variable overhead . . . . . . . . .... $1.50 per unit

Production–Month 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200 units

Production–Month 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,400 units

Actual factory overhead–Month 1. . . . . . . . . . . . . . . . . . . . . . . . . ... $ 14,700

Actual factory overhead–Month 2. . . . . . . . . . . . . . . . . . . . . . . . .. $ 17,400

Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month. The normal capacity of a factory is 10,000 units per month. Cost and production data follow: