Final Answer:
a) Actual Costs Incurred: $52,164
b) Actual Input Quantity * Budgeted Rate: $54,432 (4,536 * $12)
c) Flexible Budget: Budgeted Input Quantity * Budgeted Rate: $51,840 (12 * 4 * $1,080)
d) Allocated Overhead: $51,840 (Budgeted Input Quantity * Budgeted Rate)
Flexible-Budget Variance (a - c): $324 Unfavorable
Spending Variance (b - a): $2,268 Favorable
Efficiency Variance (b - c): $2,592 Unfavorable
Step-by-step explanation:
a) Actual Costs Incurred: This represents the total costs actually expended, which is $52,164.
b) Actual Input Quantity * Budgeted Rate: Calculated by multiplying the actual input quantity (4,536) by the budgeted rate ($12), resulting in $54,432.
c) Flexible Budget: Budgeted Input Quantity * Budgeted Rate: Derived by multiplying the budgeted input quantity (12) by the budgeted rate (4 * $1,080), resulting in $51,840.
d) Allocated Overhead: This is the same as the flexible budget, reflecting the budgeted input quantity (12) multiplied by the budgeted rate (4 * $1,080), totaling $51,840.
Flexible-Budget Variance (a - c): The difference between actual costs incurred and the flexible budget, resulting in a $324 unfavorable variance.
Spending Variance (b - a): The difference between the actual input quantity multiplied by the budgeted rate and the actual costs incurred, resulting in a $2,268 favorable variance.
Efficiency Variance (b - c): The difference between the actual input quantity multiplied by the budgeted rate and the flexible budget, resulting in a $2,592 unfavorable variance.