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 2022 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 2022. What inferences can Lavertezzo draw from this variance?
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Related Book For
Management And Cost Accounting
ISBN: 9781292436029
8th Edition
Authors: Alnoor Bhimani, Srikant Datar, Charles Horngren, Madhav Rajan
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