Data Table Static Budget (975 recliners) 502,125 Actual Results (955 recliners) Sales (975 recliners x $ 515 each) (955 recliners x $ 495 each) 472,725 Variable Manufacturing Costs: Direct Materials 51,480 51,488 Direct Labor 88,725 (5,850 yds. @ $ 8.80 / yd.) (5,987 yds. @ $ 8.60 / yd.) (9,750 DLHr @ $ 9.10 / DLHr) (9,350 DLHr @ $ 9.20 / DLHr) (5,850 yds. @ $ 5.30 / yd.) (5,987 yds. @ $ 6.70 / yd.) 86,020 Variable Overhead 31,005 40,113 Fixed Manufacturing Costs: 60,255 Fixed Overhead 62,255 231,465 Total Cost of Goods Sold 239,876 270,660 $ 232,849 Gross Profit Print Print Done Done] Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith 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.) Smith 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 overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed 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 each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar Abbreviations used: AC = actual cost: AQ = actual quantity: FOH = fixed overhead: SC = standard cost: SQ = standard auantitv. Formula Variance FOH cost variance FOH volume variance = Requirement 3. Have Smith'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 controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the V direct labor cost variance and direct materials efficiency variance. Managers have done a v job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Smith's managers can benefit from the standard costing system. Standard costing helps managers do the following: Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cast, variable overhead efficiency, fixed overhead cost, and fixed 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 each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole 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 identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) 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 variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance - Now compute the fixed overhead cost and volume variances. Seloct the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) Formula Variance (AC - SC) X AQ (AC - SC) x SQ (AQ - SQ) X AC (AQ - SQ) SC Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOH Data Table Static Budget (975 recliners) 502,125 Actual Results (955 recliners) Sales (975 recliners x $ 515 each) (955 recliners x $ 495 each) 472,725 Variable Manufacturing Costs: Direct Materials 51,480 51,488 Direct Labor 88,725 (5,850 yds. @ $ 8.80 / yd.) (5,987 yds. @ $ 8.60 / yd.) (9,750 DLHr @ $ 9.10 / DLHr) (9,350 DLHr @ $ 9.20 / DLHr) (5,850 yds. @ $ 5.30 / yd.) (5,987 yds. @ $ 6.70 / yd.) 86,020 Variable Overhead 31,005 40,113 Fixed Manufacturing Costs: 60,255 Fixed Overhead 62,255 231,465 Total Cost of Goods Sold 239,876 270,660 $ 232,849 Gross Profit Print Print Done Done] Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith 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.) Smith 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 overhead, compute the variable overhead cost, variable overhead efficiency, fixed overhead cost, and fixed 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 each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar Abbreviations used: AC = actual cost: AQ = actual quantity: FOH = fixed overhead: SC = standard cost: SQ = standard auantitv. Formula Variance FOH cost variance FOH volume variance = Requirement 3. Have Smith'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 controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the V direct labor cost variance and direct materials efficiency variance. Managers have done a v job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Smith's managers can benefit from the standard costing system. Standard costing helps managers do the following: Requirement 2. Compute the cost variance and the efficiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cast, variable overhead efficiency, fixed overhead cost, and fixed 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 each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole 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 identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) 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 variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity: FOH = fixed overhead: SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance - Now compute the fixed overhead cost and volume variances. Seloct the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost: SQ = standard quantity.) Formula Variance (AC - SC) X AQ (AC - SC) x SQ (AQ - SQ) X AC (AQ - SQ) SC Actual FOH - Allocated FOH Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOH