Esquire Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category manufacturing More Info costa) Click the icon to view additional information.) Read the requirements. Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. Actual Costs Incurred Allocated Overhead Budgeted Rate Flexible Budget Now compute the variances: flexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U). Flexible-budget variance Spending variance Efficiency variance Requirement 2. Comment on the results. spending variance because the actual variable overhead rate per direct manufacturing labor-hour was than the budgeted. It had efficiency variance because each suit averaged 7 Esquire had labor-hours than budgeted. ute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. = following More Info ctual Inpy i Requirements X Budgeted Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 4 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $12. The budgeted number of suits to be manufactured in June 2017 is 1,040. 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. nces: flexid Actual variable manufacturing costs in June 2017 were $52,164 for 1,080 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,536. Print Done ent on the Print Done spending variance because the actual variable overneaa rare per direct manuracluring rapor-nour was than the budgeted. It had efficiency variance because each suit aver ted. Esquire Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category manufacturing More Info costa) Click the icon to view additional information.) Read the requirements. Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. Begin by computing the following amounts for the variable manufacturing overhead. Actual Input Qty. Actual Costs Incurred Allocated Overhead Budgeted Rate Flexible Budget Now compute the variances: flexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U). Flexible-budget variance Spending variance Efficiency variance Requirement 2. Comment on the results. spending variance because the actual variable overhead rate per direct manufacturing labor-hour was than the budgeted. It had efficiency variance because each suit averaged 7 Esquire had labor-hours than budgeted. ute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. = following More Info ctual Inpy i Requirements X Budgeted Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2017, each suit is budgeted to take 4 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $12. The budgeted number of suits to be manufactured in June 2017 is 1,040. 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. nces: flexid Actual variable manufacturing costs in June 2017 were $52,164 for 1,080 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,536. Print Done ent on the Print Done spending variance because the actual variable overneaa rare per direct manuracluring rapor-nour was than the budgeted. It had efficiency variance because each suit aver ted
