Esquire Clothing is a manufacturer of designer suits. For June $2020,$ each suit is budgeted to take $4$ labor$-$hours. The

budgeted number of suits to be manufactured in June $2020$ is $1,040.$ Esquire Clothing allocates fixed manufacturing

overhead to each suit using budgeted direct manufacturing labor$-$hours per suit. Data pertaining to fixed manufacturing

overhead costs for June $2020$ are budgeted, $$49,920,$ and actual, $$63,930.$ In June $2020$ there were $1,080$ suits started

and completed. There were no beginning or ending inventories of suits.

Requirements

Compute the spending variance for fixed manufacturing overhead. Comment on the results.

Compute the production$-$volume variance for June $2020.$ What inferences can Esquire Clothing draw from

this variance?

Requirement $1.$ Compute the spending variance for fixed manufacturing overhead. Comment on the results.

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