50.1K

Verified Solution

Link Copied!

Regal 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 overtread costs). i (Click the icon to view additional information.) Read the requirements, BIBLE x 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 - X Actual Input Qty. Requirements Actual Costs Allocated Incurred Budgeted Rate Flexible Budget Overhead 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead 2. Comment on the results. - x More info Print Done 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 $11. The budgeted number of sults to be manufactured in June 2017 is 1.020. Actual variable manufacturing overhead costs in June 2017 were $47,250 for 1,040 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,500

Answer & Explanation Solved by verified expert

See Answer