Grand 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 2017, each suit is budgeted to take 3 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $ 10. The budgeted number of suits to be manufactured in June 2017 is 1,120.

Actual variable manufacturing costs in June 2017 were $ 49,940 for 1,160 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,540.

Grand Clothing is a manufacturer of designer suits. The oost of each suit is the sum of three variable costs) and one fixed-cost category (manufacturing overhead costs). costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead (Cliak the ioon to view additional information.) Read the reavirements 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 manulacturing overhead Actual Input Qty Actual Costs Allocated Incurred Budgeted Rate Flexible Budget Overhead Now compute the variances: fexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U) Flexible-budget variance Spending variance