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Use the following information to answer questions 6 - 7 Sydney, Brisbane and Melbourne apply factory overhead to work- in-process inventory using a predetermined overhead rate. Sydney Ltd applies FOH based on direct labour hours, Brisbane Ltd applies FOH based on units of production, and Melbourne Ltd applies FOH based on machine hours. The estimated costs and activities are as follows; Sydney Ltd Brisbane Ltd Melbourne Ltd Direct labour hours 45,000 37,500 75,000 Machine hours 27,000 112,500 150,000 Units produced 67,500 75,000 60,000 FOH cost $270,000 $225,000 $300,000 6. During the period, Melbourne Ltd used 135,000 machine hours. Calculate the FOH applied. A) $270,000 B) $300,000 c) $540,000 D) $675,000 7. During the period, Brisbane Ltd manufactured 60,000 units and incurred FOH of $165,000. Determine whether FOH was under/over-applied, by how much for the given period. A) $15,000 underapplied B) $15,000 overapplied c) $60,000 underapplied D) $60,000 overapplied Use the following information to answer questions 8-9 A Ltd has prepared a sales budget of 60,000 finished units for a June quarter. The company has an inventory of 22,500 units of finished goods on hand at 31 March and a target finished goods inventory of 25,000 units at the end of June. It takes 2 kilograms of direct materials to make one unit of finished product. The company has an inventory of 25,000 kilograms of direct materials at 31 March and a target ending inventory of 30,000 kilograms at the end of June. 8. How many units are required to manufacture during the three months ending 30 June? A) 60,000 units B) 62,500 units C) 85,000 units D) 107,500 units 9. How many kilograms of direct materials should be purchased during the June quarter? A) 125,000 kg B) 125,000 kg c) 130,000 kg D) 155,000 kg