Young Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours (DMLH) per suit.
Question:
Young 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 2015 is $62,400 budgeted and $63,916 actual.
Required
1. Calculate the rate variance for fixed manufacturing overhead. Comment on these results.
2. Calculate the production-volume variance for June 2015. What inferences can Young Clothing draw from this variance?
3. Calculate the over- or under allocated fixed manufacturing overhead. What does this tell the management about June's performance?
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Related Book For 
Cost Accounting A Managerial Emphasis
ISBN: 978-0133138443
7th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Charles T. Horngren, Louis Beaubien, Chris Graham
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