Grand Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor- hours per suit.

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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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Managerial Accounting Decision Making and Motivating Performance

ISBN: 978-0137024872

1st edition

Authors: Srikant M. Datar, Madhav V. Rajan

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Question Posted: Jan 15, 2015 04:57 AM

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Grand Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor- hours per suit.

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1 2 Fixed Manufacturing Overhead Variance Analysis for Grand Clothing for June 2013 The fixed manufa...View the full answer

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