Part A: Variance analysis The Moray Manufacturing Company produces.

Part A: Variance analysis 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 244 900 Variable 86 900 $331 800 Budgeted direct labour hours 158 000 hours Actual factory overhead incurred: Fixed 246 800 Variable 89 600 $336 400 Actual direct labour hours 146 000 hours 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



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