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.
Comment on the results.
a favorablea favorable
spending variance because the actual variable overhead rate per direct manufacturing labor-hour was
than the budgeted. It had
efficiency variance because each suit averaged
labor-hours than budgeted.
1: More Info
Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct