Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 8 - Flexible Budgets, Overhead Cost Variances, and Management Control - Assignment Material - Exercises - Page 317: 8-17(1)

Answer

Spending Variance for Fixed Manufacturing Overhead: \$1,516 U (Unfavorable)

Work Step by Step

Spending Variance for Fixed Manufacturing Overhead: Actual Fixed Manufacturing Overhead - Budgeted Fixed Manufacturing Overhead \$63,916 - \$62,400 = \$1,516 U (Unfavorable) The unfavorable spending variance indicates that Esquire Clothing spent more on fixed manufacturing overhead than budgeted in June 2014.
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