Define the term maximum (theoretical) capacity, and explain why it might not be a satisfactory basis for determining the fixed factory overhead application rate. What other capacity levels can be used to set the fixed factory overhead allocation rate? Provide a short definition of each of these alternative capacity levels. Prepare a revised variance report for Yuba Machine Company using practical capacity as the basis for determining the fixed factory overhead application rate. Round each applied overhead cost and each overhead cost variance to the nearest whole dollar. Indicate whether each of the five overhead cost variances in the revised variance report is favorable (F) or unfavorable (U). What would Yuba's reported (a) cost of goods sold (COGS) and (b) operating income be for the 6 months ending May 31, 2023, if the fixed factory overhead rate is based on practical capacity rather than on maximum capacity? Round each answer to the nearest whole dollar. What capacity level should companies use to determine the factory overhead application rate? Why