Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours (DMLH) per suit.

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Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours (DMLH) per suit. Data pertaining to fixed manufacturing overhead costs for June 2013 are $62,400 budgeted and $63,916 actual.

REQUIRED

1. Compute the rate variance for fixed manufacturing overhead. Comment on these results.

2. Compute the production-volume variance for June 2013. What inferences can Esquire Clothing draw from this variance?

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Cost Accounting A Managerial Emphasis

ISBN: 978-0133392883

6th Canadian edition

Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ

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Question Posted: Jul 31, 2015 08:27 AM

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Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours (DMLH) per suit.

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Cost Accounting A Managerial Emphasis

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