Luxury 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 1,160. Luxury 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, $64,960, and actual, $63,915. In June 2020 there were 1,200 suits started and completed. There were no beginning or ending inventories of suits. Requirements 1. Compute the spending variance for fixed manufacturing overhead. Comment on the results. 2. Compute the production-volume variance for June 2020. What inferences can Luxury 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. Same Budgeted Lump Sum Regardless of Output Level Flexible Budget: Same Budgeted Lump Sum Regardless of Output Level Actual Costs Incurred Allocated Overhead Now compute the spending variance. Label the variance as favorable (F) or unfavorable (U). Spending variance Comment on the results. The fixed manufacturing overhead spending variance and the fixed manufacturing flexible budget variance are VLuxury spent the budgeted amount for June 2020. Requirement 2. Compute the production-volume variance for June 2020. What inferences can Luxury Clothing draw from this variance? Compute the production-volume variance. Label the variance as favorable (F) or unfavorable (U). Production-volume variance What inferences can Luxury Clothing draw from this variance? The production-volume variance arises because the actual production of suits is than the budgeted production. This results in fixed manufacturing overhead. Luxury Clothing may want to consider the following for this type of production-volume variance. Is the market Is Luxury market share? Will Luxury need to