one fixed$-$cost category $($manufacturing overhead costs$).$

$($Click the icon to view additional information.$)$

Read the requirements.

Requirement $1.$ Compute the flexible$-$budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead.

Begin by computing the following amounts for the variable manufacturing overhead.

Actual Input Qty$.$

Actual Costs

Incurred

Budgeted Rate

Flexible Budget

Allocated

Overhead

Requirements

Compute the flexible$-$budget variance, the spending variance, and the efficiency

variance for variable manufacturing overhead.

Comment on the results.

More info

Variable manufacturing overhead cost is allocated to each suit on the basis of

budgeted direct manufacturing labor$-$hours per suit. For June $2020,$ each suit is

budgeted to take $5$ labor$-$hours. Budgeted variable manufacturing overhead cost

per labor$-$hour is $$11.$ The budgeted number of suits to be manufactured in June

$2020$ is $1,060.$

Actual variable manufacturing overhead costs in June $2020$ were $$47,355$ for

$1,120$ suits started and completed. There were no beginning or ending inventories

of suits. Actual direct manufacturing labor$-$hours for June were $4,510.$