1 need help understanding
Requirements 1. Prepare a flexible budget based on the actual number of recliners sold. 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed overhead volume variances. Round to the nearest dollar. 3. Have Juda's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Juda's managers can benefit from the standard costing system. Data table Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Next compute the efficiency variances. Select the required formulas, compute the eficiency variances for direct materials and direct labor, and identify whether each variance in favorable (F) or unfavorable (U). (Round your answers to the nearest whole dolar. Abbreviations used: AC= actual cost, AQ= achal quantity, FOH F fired overhead SC= standard cost SQ= standard quantte.) Now compute the variable pverhead cost and elliciency variances. Select the requled oormulas, compute the variable overhead cost and eiliciency variancess, and identify whether each yariance is favorable (f) ar untuvorable (U) (Round your answers to the nearest vitiole dolar Abbreviations used AC w achaal cest, AQ = actual quantity. FOHF i fixed averhead: SC = standard cont: SQ a standand quantity. VOH= variable overtead.) Now compute the fred overhead cost and volume variances. Select the required formulas, compule the fixed overhead cost and volume varlances, and identify whether each variance is favorable ( F ) or unfworablo (U). (Round your answers to the noarest whole dollar. Abbreviations used: AC= actual cost, AC= actual quantly. FOH= fixed overhead SC= standard cost, SQ= standard quantity) Requirement 3. Hove Juda's managers done a good job or a poor job controlling materials. labor and overtead costs? Why? The variances compoted in Requirement 2 suggest that the managers have done a direct materials cost vaiance and direct labor elliciency variance help offset the direct labor cost varlance and drect materials efliciency varlance. Managers have done a jab controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Juda's managers can benefit from the standard costing system. Standard costing helps managers do the following
