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The Warehouse is a local clothing manufacturer that makes men's dress shirts. Below is some actual vs. budget information for The Warehouse's shirts for the
The Warehouse is a local clothing manufacturer that makes men's dress shirts. Below is some actual vs. budget information for The Warehouse's shirts for the month of May. Assume no beginning ending inventories for simplicity. The cost-allocation base for both variable and fixed overhead is direct labor-hours. Data for the Month of May #Shirts made and sold Selling price per shirt Yards of fabric per shirt Cost per yard of fabric Time in hours to sew one shirt Cost of direct labor (per hour) Variable overhead costs (utilities, sewing machine maintenance, etc.) Fixed overhead costs store rent, insurance, etc.) Actual 4.325 $51 1.7 $425 0.75 $16 53.725 Static Budget 4.600 $50 18 $438 0.85 $15 S3 100 $8.900 89.200 What is the flexible budget variance for direct materials? a $1.078.93 U Ob $841.47 o 5841.47F od $1.078.93F
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