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university of southern california Operations And Supply Chain Management Assignment Help - variance analysis

Question - Variable manufacturing overhead, variance analysis. Esquire 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 over-head costs). Variable manufacturing overhead cost is allocated to each suit on
the basis of budgeted direct manufacturing labor-hours per suit. For June 2009, each suit is budgeted
to take four labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $12....The
budgeted number of suits to be manufactured in June 2009 is 1,040.
Actual variable manufacturing costs in June 2009 were $52,164 for 1,080 suits started and
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