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 $11. The budgeted number of suits to be manufactured in June 2020 is 1,060. Actual variable manufacturing overhead costs in June 2020 were $54,480 for 1,100 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labor-hours for June were 4,540. 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 47,880 $ 45,600 $ 34,200 $ Allocated Overhead 34,200 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 13,680 Spending variance $ 2,280 U Efficiency variance $ 11,400 Requirement 2. Comment on the results. than the budgeted. It had a favorable efficiency variance because Top - Notch had an unfavorable spending variance because the actual variable overhead rate per direct manufacturing labor-hour was more each suit averaged more labor-hours than budgeted