Radiance 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). (Click the icon to view additional information.) 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 x Incurred Budgeted Rate Flexible Budget Allocated Overhead 63280 Now compute the variances: flexible-budget variance, then spending variance, and finally the efficiency variance. Label each variance as favorable (F) or unfavorable (U). Flexible-budget variance Spending variance Efficiency variance Requirement 2. Comment on the results. Radiance had a favorable U F U spending variance because the actual variable overhead rate per direct manufacturing labor-hour was less than the budgeted. It had an unfavorable efficiency variance because each suit averaged more labor-hours than budgeted. 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 1,080. Actual variable manufacturing overhead costs in June 2020 were $63,280 for 1,140 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,520. Print Done a Requirements 1. Compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead. 2. Comment on the results. Print Done