Requirement 1 Compute the flexible-budget variance, the...

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Chapter 8a Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead.
Requirement 2. Comment on the results. Esquire had a favorablea favorable spending variance because the actual variable overhead rate per direct manufacturing labor-hour was less than the budgeted. It had an unfavorable efficiency variance because each suit averaged more labor-hours than budgeted. 1: More Info Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct

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