Save Homework: chapter 8 HW Score: 0 of 20 pts E8-21 (similar to) 1 of 6 (0 comp

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Save Homework: chapter 8 HW Score: 0 of 20 pts E8-21 (similar to) 1 of 6 (0 complete) HW Score: 0%, 0 of 135 pts E Question Help Opulence 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 overhead costs). a (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. i More Info Actual Costs Allocated Overhead Incurred Budgeted Rate Flexible Budget 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 $14. The budgeted number of suits to be manufactured in June 2017 is 1,060. O Requirements Actual variable manufacturing costs in June 2017 were $68,100 for 1,120 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,540. 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. Print Done Print Done Enter any number in the edit fields and then click Check Answer. 4 parts 4 remaining Clear All Check Answer

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Par-2:

Spending Variance is unfavorable since actual per hour rate of 15 is higher then budgeted rate of 14

Efficiency Variance is unfavorable since actual per unit hours 4.05 higher then budgeted hour of 4 per unit

Par-1 Actual Cost Incurred Actual Input Q*Budgeted Rate Flexible Budget Allocated Overhead 4540*14 (working-1) (working-2) 68100 63560 62720 62720 Spending Variance 68100-63560 4540 U Efficiency Variance 63560-62720 840 U Flexible Variance 68100-62720 5380 U

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