Fixed-manufacturing overhead, variance analysis Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing

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Fixed-manufacturing overhead, variance analysis

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 2009 are budgeted, $62,400, and actual, $63,916.

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

2. Compute the production-volume variance for June 2009. What inferences can Esquire Clothing draw from this variance?

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Cost Accounting A Managerial Emphasis

ISBN: 978-0136126638

13th Edition

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

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Question Posted: Jun 10, 2011 03:09 AM

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Fixed-manufacturing overhead, variance analysis Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing

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