Opulence Clothing is a manufacturer of designer suits. For June 2014, each suit is budgeted to take 5 labor-hours. The budgeted number of suits to be…. Opulence Clothing is a manufacturer ofÿdesigner suits. For June 2014, each suit is budgeted to take 5 labor-hours.ÿ The budgeted number of suitsÿto be manufactured in June 2014 is 1,1160.ÿ Opulence Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor-hours per suit.ÿ Data pertaining toÿfixed manufacturing overhead costs for June 2014 are budgeted, $87,000.00ÿand actual, $63,935.ÿ In June, 2014 there were 1,180 suits started and completed.ÿ There were no beginning or ending inventories of suits.Compute the spending variance for fixed manufacturing overhad. Comment on the results.Compute the production-volume variance for June 2014. What inferences can Opulence draw from this variance?
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Opulence Clothing is a manufacturer of designer suits. For June 2014, each suit is budgeted to take 5 labor-hours. The budgeted number of suits to be…
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