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$).$

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Read the requirements.

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 manufacturing overhead.

Actual Input Qty$.$

Actual Costs

Incurred

Budgeted Rate

Flexible Budget

Allocated

Overhead

More info

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 $3$ labor$-$hours. Budgeted variable manufacturing overhead cost per labor$-$hour is $$10.$ The budgeted number of suits to be manufactured in June $2020$ is $1,140.$

Actual variable manufacturing overhead costs in June $2020$ were $$41,130$ for $1,160$ suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor$-$hours for June were $4,570.$

Requirements

Compute the flexible$-$budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead.

Comment on the results.