Chapter 8 - Flexible Budgets, Overhead Cost Variances, and Management Control - Assignment Material - Exercises - Page 317: 8-16(2)

The unfavorable spending variance and efficiency variance for variable manufacturing overhead suggest that the actual costs exceeded the budgeted costs. The primary reason for this discrepancy appears to be the higher number of direct manufacturing labor-hours used compared to the budgeted standard, resulting in increased costs.

The unfavorable spending variance and efficiency variance for variable manufacturing overhead suggest that the actual costs exceeded the budgeted costs. The primary reason for this discrepancy appears to be the higher number of direct manufacturing labor-hours used compared to the budgeted standard, resulting in increased costs.