=+12-17 K Fixed manufacturing overhead, variance analysis (continuation of 12-16) OBJECTIVE 4 Stafford Clothing 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, $62400, and actual, $63916.

Required 1 Calculate the spending variance for fixed manufacturing overhead. Comment on the results.

2 Calculate the production-volume variance for June 2015. What inferences can Stafford Clothing draw from this variance?

M12_HORN3377_02_LT_C12.indd 494 2/09/13 3:50 PM