cost system. Root allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Round budget amounts per unit to the nearest cent) and for direct labor. For manufacturing overhead, compute the variable overhead cost variable overhead efficiency, fixed overhead cost, and fixed next question Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, comp overhead volume variances. Round to the nearest dollar Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether dollar. Abbreviations used: AC = actual cost: AQ = actual quantity, FOH = fixed overhead: SC = standard cost, SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and ider nearest whole dollar. Abbreviations used: AC # actual cost; AQ - actual quantity, FOH = fixed overhead: SC standard cost; SQ = standard quanti Formula Variance Direct materials efficiency variance Direct labor efficiency variance Now compute the variable overhead cost and efficiency variances Select the required formulas, compute the variable overhead cost and efficiency answers to the nearest whole dollar. Abbreviations used: AC actual cost; AQ - actual quantity: FOH fixed overhead: SC standard cost; SQ -- Formula Variance VOH cost varianco VOH efficiency variance Now come the fixed nverhand cost and volume variannes Select the round forming comnule the fived overhead cost and volume variances Choose from any list or enter any number in the input fields and then continue to the next question and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead officiency, fixed overhead cost, and fixed direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole BC = standard cost; SQ = standard quantity) ance variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the md overhead: SC - standard cost; SQ - standard quantity) Variance Lilas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your tity, FOH fixed overhead: SC = standard cost, SQ = standard quantity, VOH - variable overhead.) omnute the fived overheads and volume variances and intentify whether each varianta in favorabin Flor unfavorable Round Our wors ext question formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) ar unfavorable (U). (Round your answe uantity, FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) Variance nea g materials, labor, and overhead costs? Why? job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the Managers have done a Job controlling overhead costs as evidenced by the fact that of the overhead variances are costing system Data Table Static Budget (1,000 recliners) 495,000 Actual Results (980 recliners) $ 480,200 53,400 Sales (1,000 recliners x $495 each) (980 recliners x $490 each) Variable Manufacturing Costs: Direct Materials (6,000 yds @ $8.90 / yd.) (6,143 yds. @ $8.70 / yd.) Direct Labor (10,000 DLHr @ $11.30 / DLHR) (9,600 DLHO @ $11.40 / DLHR) Variable Overhead (6,000 yds @ $5.20 / yd.) (6,143 yds @ $6.60 /yd.) Fixed Manufacturing Costs: 53,444 113,000 109,440 31,200 40,544 Fixed Overhead 60,600 62,600 Total Cost of Goods Sold 258,200 266,028 Gross Profit 236,800 $ 214,172 Print Done i Requirements X 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 Root's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Root's managers can benefit from the standard costing system. Print Done