Question

Exercise 8-18 (similar to) Top Notch Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three vanable costs (direct material costs, direct manufacturing labour costs, and manufacturing overhead costs) and one foed-cost category (manufacturing overhead costs) (Click the icon to view additional information) Recured Requirement 1. Compute the flexible budget variance, the spending vanance, and the efficiency variance for variable manufacturing overhead Begin by computing the following amounts for the variable manufacturing overhead Actual Input ty Actual Costs X Allocated incurred Budgeted Rate Flexible Budget Overhead 5000 RON 5472011 0 Add tonal information Vanable manufacturing overhead cost istocated to each suit on the basis of budod direct manufacturing labour hours per suit For June 2017 nachts budgeted to take 4 labour hours Budgeted variable manufacturing overhead cod berbour-hour 512 The budgeted rumber of suits to be manufactured in June 2017 5 1180 Actual anable manufactung costs in Sune 2017 were 559020 1.140 Suits started and completed. There were no beginning of ending inventories of suits Actual direct manufacturing labour.hours for June were 4500 Print Done E m bernholds and then click Chock Answor

Answer 1

T 7 TOP- Norch clothing is a manufachoes of designes suits Achic Input ory Acra cost Incursed Byggeledrale Flexible Budget: (Budgete Input ory X Alloweg for Achol Output X Budge led rale] Allocated Budinput ty All for nerea output X Budgeles Robe s 59020 coriven (4540x $13 $ 54,480 (45408$ 12) 3 54 720 (£140X 4 X$12) $ 54720 (1140 X 4 X 12) 4540 U 240 F Never a variance spending Efficiency variance variance 4300 u flexible budget variance calculation Roate DACHiC Hour e How 559020 : 4540 = $13 spending variance Su590 Efficiency variance $ 840 flexible budget variance II & 4300 0