Grand clothing is a manufacturer of designer suits. the cost of each suit is the sum of three variable costs (direct materialcosts, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturinglabor-hours per suit. for june 2014, each suit is budgeted to take 55 labor-hours. budgeted variable manufacturing overhead cost perlabor-hour is $10.

the budgeted number of suits to be manufactured in june 2014 is 1,100. actual variable manufacturing costs in june 2014 were $43,130 for 1,160 suits started and completed. there was no beginning or ending inventories of suits. actual direct manufacturing labor-hours for june were 4,540.

requirements

1. compute the flexible-budget variance, the spending variance, and the efficiency variance for variable manufacturing overhead.

2. comment on the results.

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.