Cole Recliners manufactures leather recliners and uses flexible budgeting

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: E: (Click the icon to view the selected data.) Read the requirements Data table Requirement 1. Prepare a flexible budget based on the actual ng Cole Recliners Flexible Budget Budget Amounts Static Budget (975 Actual Results recliners) (955 recliners) $ 492,375 $ 467,950 50,895 50,890 per Unit 112.125 Actual Units (Recliners) Sales (975 recliners x $505 each) (955 recliners x $490 each) Variable Manufacturing Costs: Direct Materials (5,850 yds @ $8.70 / yd.) (5,987 yds @ $8.50 / yd.) Direct Labor (9,750 DLHr @ $11.50 / DLHr) (9,350 DLHr@ $11.70 / DLHr) Variable Overhead (5,850 yds @ $5.30 / yd.) (5,987 yds @ $6.70 / yd.) Fixed Manufacturing Costs: Fixed Overhead 955 109,395 31,005 40,113 Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: 60,255 62,255 Total Cost of Goods Sold 254,280 262,653 205,297 $ 238,095 $ Gross Profit Fixed Overhead Total Cost of Goods Sold Gross Profit Print Done 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 Cole's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Cole's managers can benefit from the standard costing system Print Done