(Click the icon to view the selected data.) Read the requirements. Data table 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 Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Preston's managers can benefit from the standard costing system. Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Preston Recliners Flexible Budget Budget Amounts per Unit \begin{tabular}{l} \hline Actual Units (Recliners) \\ \hline Sales Revenue \\ Variable Manufacturing Costs: \\ Direct Materials \\ Direct Labor \\ Fariable Overhead \\ Fixed Manufacturing Costs: \\ Total Cost of Goods Sold \end{tabular} overhead volume variances. Round to the nearest dollar. dollar. Abbreviations used: AC = actual cost; AQ= actual quantity; FOH= fixed overhead; SC = standard cost; SQ= standard quantity.) nearest whole dollar. Abbreviations used: AC= actual cost; AQ= actual quantity; FOH= fixed overhead; SC= standard cost;SQ= standard quantity. Requirement 3. Have Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance. Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Preston's managers can benefit from the standard costing system