ch08 a - $51,840 2. Esquire had a favorable spending...

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CH 8 8-16 (20 min.) Variable manufacturing overhead, variance analysis. 1. Variable Manufacturing Overhead Variance Analysis for Esquire Clothing for June 2009 Actual Costs Incurred Actual Input Qty. × Actual Rate (1) Actual Input Qty. × Budgeted Rate (2) Flexible Budget: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (3) Allocated: Budgeted Input Qty. Allowed for Actual Output × Budgeted Rate (4) (4,536 × $11.50) $52,164 (4,536 × $12) $54,432 (4 × 1,080 × $12) $51,840 (4 × 1,080 × $12)
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Unformatted text preview: $51,840 2. Esquire had a favorable spending variance of $2,268 because the actual variable overhead rate was $11.50 per direct manufacturing labor-hour versus $12 budgeted. It had an unfavorable efficiency variance of $2,592 U because each suit averaged 4.2 labor-hours (4,536 hours 1,080 suits) versus 4.0 budgeted labor-hours. $2,268 F Spending variance $2,592 U Efficiency variance Never a variance $324 U Flexible-budget variance Never a variance...
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