Esquire Clothing is a manufacturer of designer suits.

The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs).

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 4 labor-hours.

Budgeted variable manufacturing overhead cost per labor-hour is $12.

The budgeted number of suits to be manufactured in June 2020 is 1,040.

Actual variable manufacturing overhead costs in June 2020 were $52,164 for 1,080 suits started and completed.

There were no beginning or ending inventories of suits.

Actual direct manufacturing labor-hours for June were 4,536.

Match the following labels with the appropriate calculations.

Flexible Budget Variance Amount, Variable Overhead

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Spending Variance, Variable Overhead

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Efficiency Variance, Variable Overhead

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Standard Quantity of Labor Hours Per Unit of Output

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Actual Quantity of Labor Hours Per Unit of Output

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Standard Price of Overhead per Hour of Labor

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Actual Price of Overhead per Hour of Labor

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Flexible Budget Variance Impact on Operating Income, Variable Overhead

[ Choose ] $12.00 4.2 $11.50 $2,592 Favorable $324 4.0 $2,268 Unfavorable

Spending Variance Impact on Operating Income, Variable Overhead

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, $62,400, and actual, $63,916.

Group of answer choices

Flexible Budget Variance Amount, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance

Flexible Budget Variance Impact on Operating Income, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance

Spending Variance Amount, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance

Spending Variance Impact on Operating Income, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance

Efficiency Variance Amount, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance

Efficiency Variance Impact on Operating Income, Fixed Overhead

[ Choose ] Unfavorable $1,516 Same as Flexible Budget Variance Always 0 Equal to Flexible Budget Variance Always no impact Equal to Price Variance, Same as Price Variance