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Grand Clathing is a manufacturer of designer suits. For June 2017, each suit is budgeted to take 5 labor-hours. The budgoted number of suits to

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Grand Clathing is a manufacturer of designer suits. For June 2017, each suit is budgeted to take 5 labor-hours. The budgoted number of suits to be manufactured in June 2017 is 1,080. Grand Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor-hours per suit. Data pertaining to fixed manulacturing overhead costs for June 2017 are budgeted, $75,600, and actual, $63,900. In June 2017 there were 1,140 suits started and completed. There were no beginning or ending inventories of suits. Requirements 1. Compute the spending variance for fixed manulacturing overhead. Comment on the resulls. 2. Compute the production-votume variance for June 2017. What inferences can Grand Clothing draw from this variance? Requirement 1. Compule the spending variance for foxed manutacturing overhead. Comment on the results, Begin by computing the following amounts for the fixed manufacturing overhead. Now compute the spending vanance. Label the vanance as tavorable (t) or untavorable (U). Spending variancis Comment on the results. The fuxed manufacturing overhead spending variance and the fixed manutacturing flexible budget variance are amount for June 2017. Requirement 2. Corrpule the production-volume variance for June 2017. What inferences can Grand Clothing draw from this variance? Compute the production-yolume variance. Label the variance as favorable (F) or untavorable (U). Production-volume variance What inferences can Grand Clothing draw from this variance? The production-volume variance arises because the actual production of sults is than the budgoted production. This results in fixed mandacturing overhead. Grand Clothing may want to consider the following for this type of production-volume variance. Is the market Is Grand markot share? Will Grand neod to

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