P24-3A Bronx Co. manufactures insulated hunting jackets and uses flexible budgeting and a standard cost system. Bronx allocates overhead based on yards of direct materials. The com- pany's performance report includes the following selected data: Sales (1.000 jackets x $200) (975 jackets x $192) Variable manufacturing expenses: Static Budget (1,000 jackets) Actual Results $200,000 (975 jackets) $187.200 Direct materials (4,000 yd x $7.90) 31,600 (4.100 yd x $7.65) 31.365 Direct labor (5.000 hr x $6.00). 30.000 (4.800 hr x $6.05).. 29.040 Variable overhead (4,000 yd x $5.00) 20,000 (4.100 yd X $6.40) 26.240 Fixed manufacturing expenses: Fixed overhead. 27,000 28.500 Total cost of goods sold. 108.600 115.145 $ 91.400 $ 72.055 Gross profit. Required 1. Prepare a flexible budget based on the actual number of jackets sold. 2. Compute the price variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the total variance, the flexible budget vari- ance, and the production volume variance. 3. What is the total flexible budget variance for Bronx's manufacturing costs? Show how the total flexible budget variance is divided into materials, labor, and overhead variances. 4. Have Bronx's managers done a good job or a poor job controlling material and labor costs? Why? 5. Describe how Bronx's managers can benefit from the standard costing system.