Borgin and Burke's is a local clothing manufacturer that makes casual women's skirts. Below is some...

 

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Borgin and Burke's is a local clothing manufacturer that makes casual women's skirts. Below is some actual vs. budget information for Borgin and Burke's skirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # Skirts made and sold 1,250 1,600 Selling price per skirt $29 $30 Yards of fabric per skirt 1.9 2 Cost per yard of fabric $2.95 $2.73 Time in hours to sew one skirt 0.5 0.6 Cost of direct labor (per hour) $15 $14 Variable overhead costs $3,825 $3,235 (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4.950 $4.650 A 1.9 Yards of fabric per skirt $2.95 $2.73 Cost per yard of fabric 0.5 0.6 Time in hours to sew one skirt Cost of direct labor (per hour) $15 $14 Variable overhead costs $3.825 $3,235 (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4.950 $4,650 (store rent, insurance, etc.) What is the fixed overhead spending variance? O $150 F O $200 F O $300 U O $350 U Borgin and Burke's is a local clothing manufacturer that makes casual women's skirts. Below is some actual vs. budget information for Borgin and Burke's skirts for the month of May. Assume no beginning/ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May Static Actual Budget # Skirts made and sold 1,250 1,600 Selling price per skirt $29 $30 Yards of fabric per skirt 1.9 2 Cost per yard of fabric $2.95 $2.73 Time in hours to sew one skirt 0.5 0.6 Cost of direct labor (per hour) $15 $14 Variable overhead costs $3,825 $3,235 (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4.950 $4.650 A 1.9 Yards of fabric per skirt $2.95 $2.73 Cost per yard of fabric 0.5 0.6 Time in hours to sew one skirt Cost of direct labor (per hour) $15 $14 Variable overhead costs $3.825 $3,235 (utilities, sewing machine maintenance, etc.) Fixed overhead costs $4.950 $4,650 (store rent, insurance, etc.) What is the fixed overhead spending variance? O $150 F O $200 F O $300 U O $350 U

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