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 2018 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 2018. What inferences can Lavertezzo draw from this variance?
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Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
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