Homework: Chapters 22-24 Homework - 25 points Score INI Score: 0 of 3 pts 4 of 10 (7 complete P23-26A (book/static) Morton Recliners manufactures leather recliners and usefuble budgeting and standard cost system Morton locales ved based on yde of Great The company promote (Click the icon to view the selected data) Read the meets requirement represen memarmoore Domen Morton Reches Flexible fudget Budget Amounts 11.000 Actual Units (Recliners 1000 W Sales Revenue reinen Varlate Manufacturing Costs Valable Mandaluring Direct Materials Drew 6.000 Direct Labor 51 Variable Over 10.000) DO Fixed Manufacturing Cost Veriler 152 Fixed Overhead 01 Total Cost of Goods Sold Gross Profit Fuad Oratout Enbor any oth edited and track Check AS ing and a standard cost system. Morton allocates overhead based on yards of direct cted data: recliners sold. (Round budget amounts per unit to the nearest cent.) Requirements - X w 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 Morton's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Morton's managers can benefit from the standard costing system Print Done Actual Results Static Budget (1,000 recliners) $ 505,000 (980 recliners) $ 470.400 51,600 51,601 Sales (1,000 recliners x $ 505 each) (980 recliners x $ 480 each) Variable Manufacturing Costs Direct Materials (6.000 yds @ $ 860 / yd.) (6.143 yds @ $ 8.40 / yd.) Direct Labor (10,000 DLHO @ $ 9.20 / DLHr) (9.600 DL.Hr @ $ 9.30 / DLH) Variable Overhead (6.000 yds@ $ 5 20 7yd) (6 143 yds @ $ 6.60 / ydy Fixed Manufacturing Costs Fixed Overhead 92.000 89.280 31,200 40,544 fu als 60,600 62.600 235.400 244,025 thel Total Cost of Goods Sold cing S 269.600 $ 226,375 Gross Profit Homework: Chapters 22-24 Homework - 25 points Score INI Score: 0 of 3 pts 4 of 10 (7 complete P23-26A (book/static) Morton Recliners manufactures leather recliners and usefuble budgeting and standard cost system Morton locales ved based on yde of Great The company promote (Click the icon to view the selected data) Read the meets requirement represen memarmoore Domen Morton Reches Flexible fudget Budget Amounts 11.000 Actual Units (Recliners 1000 W Sales Revenue reinen Varlate Manufacturing Costs Valable Mandaluring Direct Materials Drew 6.000 Direct Labor 51 Variable Over 10.000) DO Fixed Manufacturing Cost Veriler 152 Fixed Overhead 01 Total Cost of Goods Sold Gross Profit Fuad Oratout Enbor any oth edited and track Check AS ing and a standard cost system. Morton allocates overhead based on yards of direct cted data: recliners sold. (Round budget amounts per unit to the nearest cent.) Requirements - X w 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 Morton's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Morton's managers can benefit from the standard costing system Print Done Actual Results Static Budget (1,000 recliners) $ 505,000 (980 recliners) $ 470.400 51,600 51,601 Sales (1,000 recliners x $ 505 each) (980 recliners x $ 480 each) Variable Manufacturing Costs Direct Materials (6.000 yds @ $ 860 / yd.) (6.143 yds @ $ 8.40 / yd.) Direct Labor (10,000 DLHO @ $ 9.20 / DLHr) (9.600 DL.Hr @ $ 9.30 / DLH) Variable Overhead (6.000 yds@ $ 5 20 7yd) (6 143 yds @ $ 6.60 / ydy Fixed Manufacturing Costs Fixed Overhead 92.000 89.280 31,200 40,544 fu als 60,600 62.600 235.400 244,025 thel Total Cost of Goods Sold cing S 269.600 $ 226,375 Gross Profit
