Homework: Chapter 23 Homework Save Score: 0 of 36 pts 1 of 1 (0 complete) HW Score: 0%, 0 of 36 pts P23-31B (similar to) Question Help Root Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Root 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.) Root Recliners Data Table Flexible Budget Budget Amounts per Unit Static Budget (1,000 recliners) Actual Results (980 recliners) Requirements Actual Units (Recliners) $ 510,000 Sales Revenue 465,500 Variable Manufacturing Costs: Direct Materials 51,600 Direct Labor 51,601 Variable Overhead Sales (1,000 recliners x $510 each) (980 recliners x $475 each) Variable Manufacturing Costs: Direct Materials (6,000 yds. @ $8.60 / yd.) (6,143 yds. @ $8.40 / yd.) Direct Labor (10,000 DLHr @ $9.10 / DLHr) (9,600 DLHr @ $9.20 / DLHr) Variable Overhead (6.000 yds. @ $5.00 / yd.) (6,143 yds. @ $6.40 / yd.) Fixed Manufacturing Costs: 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. 91,000 Fixed Manufacturing Costs: 88,320 Fixed Overhead 30,000 Total Cost of Goods Sold 39,315 Gross Profit Print Done Fixed Overhead 60,000 62,000 232.600 Total Cost of Goods Sold 241,236 $ 277,400 $ 224,264 Gross Profit Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check