Question

Grand 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 2013 are budgeted, $ 61,200, and actual, $ 63,900.

Required
1. Compute the spending variance for fixed manufacturing overhead. Comment on the results.
2. Compute the production- volume variance for June 2013. What inferences can Grand Clothing draw from this variance?



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  • CreatedJanuary 15, 2015
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