$1,020$ suits started and completed. There was no beginning or ending inventory of suits. Actual DMLH for June were $4,560.$

Required

$1.$ Calculate the flexible$-$budget variance, the rate variance, and the efficiency variance for VMOH $.$

$2.$ Comment on the results.

Requirement $1.$ Calculate the flexible$-$budget variance, the rate variance, and the efficiency variance for VMOH.

Begin by computing the following amounts for the VMOH. $($Round your answers to the nearest whole dollar.$)$

Actual Input

Actual Costs Quantity $\backslash (\backslash$times $\backslash )$

Incurred Budgeted Rate $\backslash (\backslash$quad $\backslash )$ Flexible Budget

Now, compute the variances: flexible$-$budget variance, then rate variance, and finally the efficiency variance. Label each variance as favourable $($F$)$ or unfavourable $($U$).$

Requirement $2.$ Comment on the results.

Radiance had rate variance because the actual variable overhead rate per direct manufacturing labour$-$hour was than budgeted. It had efficiency variance because each suit averaged labour$-$hours than budgeted.