bjectives 1, 3, 4 Eff. Var. $1,377 U Sales 4. Explain why the flexible budget performance report provides more useful informa tion to Small Talk's managers than the simple static budget variance. What insights can Small Talk's managers draw from this performance report? P23-26A Preparing a flexible budget computing standard cost variances Kyler Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Kyler allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (1,025 recliners x $495 each) (1,005 recliners x $485 each) Variable Manufacturing Costs: Direct Materials Static Budget (1,025 recliners) $ 507,375 Actual Results (1,005 recliners) $487,425 (6,150 yds. @ $8.90/yd.) 54,735 (6,300 yds. @ $8.70/yd.) 54,810 Direct Labor (10,250 DLHr @ $9.00/DLHr) 92,250 (9,850 DLHr @ $9.10/DLHr) 89,635 Variable Overhead (6,150 yds. @ $5.10/yd.) 31,365 (6,300 yds. @ $6.50/yd.) 40,950 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 62,730 64,730 241,080 250,125 $ 266,295 $ 237,300