Variable manufacturing overhead, variance analysis. Esquire Clothing is a manufacturer of designer suits. The cost of each suitis the sum ofthree variable costs (direct materials costs, direct manufacturing labour costs, and manufacturing overhead costs) and one fixed-cost category

(manufacturing overhead costs). Variable manufacturing overhead cost is allocated to each suit based on budgeted direct manufacturing labour-hours per suit. For June 2007, each suit is budgeted to take 4 labour-hours. Budgeted variable manufacturing overhead costs per labourhour are $14.40. The budgeted number ofsuits to be manufactured inJune 2007 is 1,040.

Actual variable manufacturing overhead costs in June 2007 were $62,597 for 1,080 suits started and completed. There was no beginning or ending inventory of suits. Actual direct manufacturing labour-hours forJune were 4,536.

Required 1. Compute the static-budget variance, the flexible-budget variance, and the sales-volume variance for variable manufacturing overhead.

2. Comment on the results.