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Question - Super Garments is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct materials cost, direct manufacturing labour costs and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). 4 DLH required to produce one unit of output. Variable manufacturing costs is allocated to each suit on the basis of budgeted direct manufacturing overhead cost per labour-hour is $12. The budgeted number of suits to be manufactured in June 2021 is 1040. Actual variable manufacturing overhead costs in June 2021 were $52,095 for 1080 suits started and completed. There were no beginning or ending inventories of suits. Actual direct manufacturing labour hours for June were 4530.
Required - Calculate the flexible budget variance, the spending variance and the efficiency variance for variable manufacturing overhead.
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