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Actual variable manufacturing costs in June 2014 were $52,164 for 1,080 suits started and completed. Therewere no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,536.Required:1.Compute the flexible-budget variance, the spending variance, and the efficiency variance for variablemanufacturing overhead.2.Comment on the results.
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Problem 3.Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2014 are budgeted, $62,400, andactual, $63,916.Required:1.Compute the spending variance for fixed manufacturing overhead. Comment on the results.2.Compute the production-volume variance for June 2014. What inferences can Esquire Clothing draw fromthis variance?$