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one fixed-cost category (manufacturing overhead costs). (Click the icon to view additional information.)...

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Accounting

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
Incurred
Budgeted Rate
Flexible Budget
Allocated
Overhead
Requirements
Compute the flexible-budget variance, the spending variance, and the efficiency
variance for variable manufacturing overhead.
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 $11. The budgeted number of suits to be manufactured in June
2020 is 1,060.
Actual variable manufacturing overhead costs in June 2020 were $47,355 for
1,120 suits started and completed. There were no beginning or ending inventories
of suits. Actual direct manufacturing labor-hours for June were 4,510.
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