Modern Mode Clothing is a manufacturer of designer suits. For June 2014, each suit is budgeted to take 4 labor-hours. The budgeted number of suits to be manufactured in June 2014 is 1,200. Modern Mode 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 2014 are budgeted, $81,.600, and actual, $63,900. In June 2014 there were 1,260 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 2014. What inferences can Modern Mode 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 Flexible Budget: Same Budgeted Lump Sum Same Budgeted Lump Sum Regardless of Regardless of Output LevelOutput Level Actual Costs Allocated Overhead Incurred 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 a budgeted amount for June 2014. Requirement 2. Compute Compute the production-volume variance. Label the variance as favorable (F) or unfavorable (U) Production-volume variance What inferences can Modern Mode Clothing draw from this variance? nd the fixed manufacturing flexible budget variance are Modern Mode spent! ] the the production-volume variance for June 2014. What inferences can Modern Mode Clothing draw from this variance? and then continue to the next