Inspired Ltd manufactures spurs. Factory overhead is applied to the pr

Inspired Ltd manufactures spurs. Factory overhead is applied to the production of spurs using a predetermined rate based on budgeted direct labour hours. Budgeted cost of production (for 30,000 units) for the year to 30 June 2015 was:Direct materials$ 225,000Direct labour (6,000 hours)75,000Fixed factory overhead39,000Variable factory overhead30,000Actual factory overhead incurred in the year to 30 June 2015 was $72,000. Actual direct labour hours were 6,100.Required:( a ) Calculate the factory overhead application rate (per direct labour hour) for the year.( b ) Calculate the total amount of factory overhead for the year applied to the production of spurs.( c ) Analyse under or over-applied overhead into two variances. Your answer must name the two variances, and indicate whether they are favourable/unfavourable.

3 Simple steps to get your paper done

Step 1

Step 2

Step 3

Place Order Down to work Paper is Ready!

Takes just a few minutes!

Best writer takes the order

Access via your account

Inspired Ltd manufactures spurs. Factory overhead is applied to the pr

Inspired Ltd manufactures spurs. Factory overhead is applied to the production of spurs using a predetermined rate based on budgeted direct labour hours. Budgeted cost of production (for 30,000 units) for the year to 30 June 2015 was:Direct materials$ 225,000Direct labour (6,000 hours)75,000Fixed factory overhead39,000Variable factory overhead30,000Actual factory overhead incurred in the year to 30 June 2015 was $72,000. Actual direct labour hours were 6,100.Required:( a ) Calculate the factory overhead application rate (per direct labour hour) for the year.( b ) Calculate the total amount of factory overhead for the year applied to the production of spurs.( c ) Analyse under or over-applied overhead into two variances. Your answer must name the two variances, and indicate whether they are favourable/unfavourable.

3 Simple steps to get your paper done

Step 1

Step 2

Step 3

Place Order Down to work Paper is Ready!

Takes just a few minutes!

Best writer takes the order

Access via your account