Lavertezzo allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labour-hours per suit. Data pertaining

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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 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 2015. What inferences can Lavertezzo draw from this variance?
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Management and Cost Accounting

ISBN: 978-1292063461

6th edition

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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