Cole Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Cole allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements. Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Cole Recliners 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 Enter any number in the edit fields and then click Check Answer. 1. Prepare a flexible budget based on the actual number of recliners sold. 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. Have Cole's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Cole's managers can benefit from the standard costing system. 3. Static Budget (1,025 recliners) 512,500 Actual Results (1,005 recliners) Bo mch) 5 S 497,475 53,505 53,550 Sales (1,025 recliners x $ 500 each) (1,005 recliners x $ 495 each) Variable Manufacturing Costs: Direct Materials (6,150 yds @ $ 8.70 / yd.) (6,300 yds @ $ 8.50 / yd.) Direct Labor (10,250 DLHr @ $ 9.10 / DLHr) (9,850 DLHr @ $ 9.20 / DLHr) Variable Overhead (6,150 yds @ $ 5.10 / yd.) (6,300 yds. @ $ 6.50 / yd.) Fixed Manufacturing Costs: 93,275 90,620 31,365 40,950 62,730 64,730 Fixed Overhead 240,875 249,850 Total Cost of Goods Sold 271,625 $ 247,625 Gross Profit