Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining
Question:
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 budgeted, SFr 62 400, and actual, SFr 63 916.
Required
1. Calculate the spending variance and the flexible-budget variance for fixed manufacturing overhead. Comment on these results.
2. Calculate the production-volume variance for June 2008. What inferences can Lavertezzo draw from this variance?
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1 Budgeted fixed overhead rate per unit of SFr62400 allocation base 10404 62400 4160 SFr15 per hour ...View the full answer
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Related Book For 
Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
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