Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. modern mode clothing is a manufacturer of designer

Modern Mode Clothing is a manufacturer of designer suits. For June 2014, each suit is...

50.1K

Verified Solution

Question

Accounting

Modern Mode Clothing is a manufacturer of designer suits. For June 2014, each suit is budgeted to take

55 labor-hours. The budgeted number of suits to be manufactured in June 2014

is 1,060. Modern Mode Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2014 are budgeted, $79,500, and actual, $63,930. In June 2014, there were 1,100 suits started and completed. There was no beginning or ending inventories of suits.

Requirements

1. Compute the spending variance for fixed manufacturing overhead. Comment on the results.

2. Compute the production-volume variance for June 2014.

What inferences can Modern Mode Clothing draw from this variance?

Requirement 1. Compute the spending variance for fixed manufacturing overhead. Comment on the results.

Begin by computing the following amounts for the fixed manufacturing overhead.

Flexible Budget:

Same Budgeted

Same Budgeted

Lump Sum

Lump Sum

Actual Costs

Regardless of

Regardless of

Allocated

Incurred

Output Level

Output Level

Overhead

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You hear on the news that the? S&P 500 was down 2.1% today relative to the?...

Finance
Q

In cats, coat colour is an example of codominance. Homozygous genotypes are expressed as either...

Biology
Q

0 A person standing on the floor of an elevator 10 drops a coin The...

Physics
Q

Since 2000 the population of a town has increased by 3 4 each year The...

Basic Math
Q

The density function for the number of times the riders scream on a roller coaster...

Calculus
Q

List K consists of 9 positive integers. The median of the integers in K is...

Algebra
Q

Danny Liu is 20 years old and is considered a dependent of his parents for...

Accounting
Q

A customer's immediate payment of cash for services performed would have which of the following...

Accounting
Q

1) The city of Trawville has a water enterprise fund that provides potable water for...

Accounting
Q

On January 1,2025, Aaron Unlimited issues 15\%, 10-year bonds payable weth a face value of...

Accounting
Q

Karim Corp. requires a minimum $8,100 cash balance. If necessary, loans are taken to meet...

Accounting
Q

Questions 811 are based on the following infornation Patriet Corporation acquired 80 pertent exmenhip of...

Accounting