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

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?

Step by Step Solution

★★★★★

3.40 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Fixed manufacturing overhead variance analysis 1 2 Budgeted fixed overhead rate per unit of allocati... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1099-B-C-A-B(2143).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Esquire 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...

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...

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...

Luxury Clothing is a manufacturer of designer suits. For June 2017, each suits budgeted to take 4 labor hours. The budgeted number of suits to be manufactured in June 2017 is 1,160. Luxury Clothing...

Question 18 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...

Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2015 are...

Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2008 are...

Grand Clothing is a manufacturer of designer suits. For June 2017, each sut is budgeted to take 5 labor-hours. The budgeted number of suits to be manufactured in June 2017 is 1.200 Grand Clothing...

Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2018 are...

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 2014 are...

A drum of 100-mm radius is attached to a disk of 200-mm radius. The disk and drum have a combined mass of 5 kg and a combined radius of gyration of 150 mm. A cord is attached to the drum at A and...

Construct a frequency distribution and histogram for the taxiin time in the Excel file Atlanta Airline Data using the Excel Histogram tool. Use bin ranges from 0 to 50 with widths of 10. Find the...

3 6 . The no arbitrage assumption assumes prices between the spot and forward prices are based on: Cost of Carry Deviations in interest rates A risk - free profit Changes in the market prices

How would a manufacturers strategy for choosing a retailer change depending on its overall market power and the consistency of the new product with existing offerings?

Why might an advertising agency use job costing for an advertising campaign by Pepsi, whereas a bank might use process costing to determine the cost of checking account deposits?

Can someone help me solve this? You are considering on investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Joumal reports that 1-year T-bills...

1) You have started your first job today, and you want to buy a house within 3 years. You are currently saving for the down payment. You plan to save $5,000 the first year. You also anticipate that...

---Can you please help me on 8c and all parts of number 9? I have A and B on number 8. Thank you! 8. (9 points possible) Suppose your company needs to raise $10 million to construct a new office...