Please assist with the following question:

Inspired Ltd manufactures spurs.Organisation policy requires Factory overhead to be 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

$ 225,000

Direct labour (6,000 hours)

75,000

Fixed factory overhead

39,000

Variable factory overhead

30,000

Actual 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.