Fixed manufacturing overhead, variance analysis (continuation of 16-11). (20 minutes) 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 2000 are budgeted, SFr 62,400, and actual, SFr 63,9106.

REQUIRED 1. Calculate the spending variance and the flexible-budget variance for fixed manufacturing overhead. Comment on these results.

Calculate the production-volume variance for June 2000. What inferences can Lavertezzo draw from this variance? bju