Hi tutor,

Please help Q.(b) ASAP, thanks!

3. Use variance analysis to review the effectiveness of the factory overhead allocation process used by Hugh Demand Ltd a. Complete the following table to calculate the factory overhead spending (budget) variance and capacity (volume) variance. Specify whether the Spending Variance and the Capacity Variance are Favourable or Unfavourable. Actual Flexible Budget Applied Fixed 220,500 Fixed 216,000 21.000hrs x $18.9 Variable 170,940 Variable 170,100 $391.,440 386,100 $396,900 Owverhead Spending Variance: 55,340(UF) Favourable / Unfavourable Overhead Capacity Variance: 510,800 (F) Favourable / Unfavourable Overhead Applied Total $5,460 Variance