Data Table recliners sold. (Round budget amounts per unit to the nearest cent.) Static Budget (1,000 recliners) Actual Results (980 recliners) Sales - X (1,000 recliners x $505 each) $ 505,000 i Requirements (980 recliners x $495 each) $ 485,100 51,600 1. 2. 51,601 115,000 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 Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Preston's managers can benefit from the standard costing system. Variable Manufacturing Costs: Direct Materials (6,000 yds. @ $8.60 / yd.) (6,143 yds. @ $8.40 / yd.) Direct Labor (10,000 DLHr @ $11.50 / DLHr) (9,600 DLHr @ $11.60 / DLHr) Variable Overhead (6,000 yds. @ $5.00 / yd.) (6,143 yds. @ $6.40 / yd.) Fixed Manufacturing Costs: 111,360 3. 30,000 4. 39,315 Fixed Overhead 60,000 62,000 Print Done Total Cost of Goods Sold 256,600 264,276 $ 248,400 $ 220,824 Gross Profit Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearesto Preston 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 Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhe Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify v 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, actual quantity: FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Now the variable overhead cost and efficiency variances. Select the required formulas, comp the variable overhead cost and AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity: VOH = variable overhead.) Formula Variance VOH cost variance Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. Compute the cost variance and the enclency verance for direct materials and for director. For manufacturing overhead, compute the variable everneed ocet, variable owertec effidency, fixed overhead cost, and fixed ove these volume varieres Round to the nearest dolar Begin with the cost vanences. Select the recure farmulas, compute the cost vananses for direct marones and direct labor, and identify whether coch vanence is favorable For unfavorable UX (Round your answers to the nearest whale color Abareviations used: AC = actual cost: AD = actual Guantity: FOH = fixed avamaad: SC = standard cast: 50 = standard quantity Formula Varonne Dinct matos at var Die labor cusl van Next compute the efficiency variances Select the required formulas, compute the efficiency variances for direct materials and director and identify whether each variance is favorable iFi or unfavorable (U). (Round your answer to the nearest whole dollar. Abbreviations used: AC - actual coet actual quantity: FOH = fixed overhead: SC standard cost: S = standerd quantity Formula ' Variance Direct materials officiency variance Direct laboratory varens Now compute the variable Overhead coet and efficiency vertences Select the required fomulas, compute the variable overhead 001 and efficiency variances and Identity whether each variance is favorable For urtevorable ! (Round your answers to the nearest whole coller Abbreviations used: AC - actual cel AQ - scual quality, FOH -wed werhoud. SC - Blandard cusl; SQ - Eldard Quartily. VOH - variables overtred.) Formule Van VOH cost variance VOH cancy variance = Now compute the fixed Overhead cos and volume variances. Select the required formulas, compute the fixed overhead coet and volume variance, and icentify whether each variance is favorabe [F) ar unfavorable (U). (Round your answers to the nearest wiele dolar. Aubreviations used: AC-scu: cost Ad = acua quentity, FOH = fred overhead: SC = stardard cast: S = standard quantity Formula variance FOHOO vann FOH volume varian Requirement 3. Have Presior's managers core a good job or a voor jcb controling rateriale, labor, and overhead cvete? Why? The wearers compras in Requiremant 2 aucypast that the managers have com Ich atraling materials and labor cochs Tha efficiency variance. Maragers have dare a job controlling overhead costs as evidenced by the fact that of the overhead variances are direct materials cost variance and direct laborefidency vertence help meet the de la cronst variance and direct materials Requirement 4. Describe how Prector's managers can benefit from the sandard costing system. Standard costing helpe managers do the folowing