The Moray Manufacturing Company produces baby dolls and sells across Asia Pacific countries. The company applies...

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The Moray Manufacturing Company produces baby dolls and sells across Asia Pacific countries. The company applies factory overhead at a rate per direct labour hour. Manufacturing records for a period ending 30 Mach 2020 shows the following costs: Budgeted factory overhead: Fixed Variable Budgeted direct labour hours Actual factory overhead incurred: Fixed Variable Actual direct labour hours 244 900 86.900 246 800 89 600 Required: Calculate the following: 1. Factory overhead application rate 2. Overhead applied in the period 3. Under or over-applied overhead for the period 4. Flexible budget formula 5. Spending variance 6. Capacity variance $331 800 158 000 hours $336 400 146 000 hours The Moray Manufacturing Company produces baby dolls and sells across Asia Pacific countries. The company applies factory overhead at a rate per direct labour hour. Manufacturing records for a period ending 30 Mach 2020 shows the following costs: Budgeted factory overhead: Fixed Variable Budgeted direct labour hours Actual factory overhead incurred: Fixed Variable Actual direct labour hours 244 900 86.900 246 800 89 600 Required: Calculate the following: 1. Factory overhead application rate 2. Overhead applied in the period 3. Under or over-applied overhead for the period 4. Flexible budget formula 5. Spending variance 6. Capacity variance $331 800 158 000 hours $336 400 146 000 hours

Answer rating: 100% (QA)

To calculate the required values we will use the following formulas 1 Factory overhead application rate Factory overhead application rate Budgeted Fix... View the full answer