BFA612-S2-2020-Ordinary-Exam-final gagandeep - Saved Review View Table Design Layout Tell me References Mailings AaBbccdi c ebal Normal No Spacing Heading 1 Heading 2 VIA Headings 9 BFA612 Management and Cost Accounting Question 3: Stafford Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material 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 2019, each suit is budgeted to take 4.5 labour-hours. Budgeted variable manufacturing overhead cost per labour-hour is $11. The budgeted number of suits to be manufactured in June 2019 is 1 400. Actual variable manufacturing overhead costs in June 2019 for 1 280 suits started, and completed, were $51,750. There was no beginning or ending inventories of suits. Actual direct manufacturing labour-hours for June were 4 500. Required 1. Calculate the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. [8 marks] 2. Comment on the results. [2 marks]