Radiance Clothing is a manufacturer of designer suits. For June 2020, each suit is budgeted to take 5 labor-hours. The budgeted number of suits to be manufactured in June 2020 is 1,100. Radiance 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, $82,500, and actual, $63,925. In June 2020 there were 1,140 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 Radiance 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. Actual Costs Incurred Same Budgeted Lump Sum Regardless of Output Level Flexible Budget: Same Budgeted Lump Sum Regardless of Output Level Allocated Overhead Requirements 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. 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 5 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $15. The budgeted number of suits to be manufactured in June 2020 is 1,040. Actual variable manufacturing overhead costs in June 2020 were $70,835 for 1,080 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,570.