Homework: chapter8 Save Score: 0 of 20 pts HW Score: 0%, a of 150 Instructor-cre

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Homework: chapter8 Save Score: 0 of 20 pts HW Score: 0%, a of 150 Instructor-created question Question, Help Tailored Clothing is a manufacturer of designer suits The cost af each sut is the sum of three averhead labor hours per suit. For June 2012, each suit is budgeted to take four labor-hours. Budgeted vanable be manufactured in June 2012 is 1,120 costs) and ane fixed-cost category (manufacturing averhead costs) Variable manufacturing overhead cost is allocated variable costs (direct material costs, direct manufactuning labor costs, and manufacturing manufactuning overhead cast per labor-hour is $14. The budgeted number of suits to Actual variable manufacturning casts in June 2012 were $65,105 for 1,180 suits started and completed. There were no beginning ar ending inventories of suits. Actual direct manufacturing labor hours for June were 4,490 1. Compute the flexible-budget vaniance, the spending variance, and the efficiency vanance for vanable manufacturing overhead Requirement 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for vaniable manufactuning overhead Compute the variances: flexible-budget variance, then spending variance, and finally the eficency vaniance Label each vanance as favorable (F) or unfavorable (U) Spending variance Efficiency variance Choose from any list or enter any number in the input fields and then cick Check Answer Clear All Check Answer

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Answer: Flexible budget variance =(Budgeted labour hours*budgeted Rate)-(Actual labour hours* Actual rate) =(4480*14)-(4490*14.5) 2385 Unfavourable Spending variance =(Budgeted rate-Actual rate)*Actual Input quantity =($14-14.5)*4490 2245 Unfavourable Efficiency variance =(Budget input quantity-Actual input quantity)*Budgeted rate =((1120*4)-4490)*14 140 Unfavourable

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