Kyler recliners manufacturers leather recliners and uses flexible budgeting and a standard cost system. Kyler allocates overhead based on yards of direct materials. The company performance report includes the following selected data. Same test different table and Name

Sales (1,000 recliners x (980 recliners x $495 $485 Variable manufacturing costs: Direct materials Direct labor Variable overhead Fixed manufacturing costs: Fixed overhead Total cost of goods sold Gross profit Static Budget Actual Results (1,000 recliners) (980 recliners) $495,000 $475,300 ) ) (6,000 yds @ (6,150 yds @ (10,000 hrs. @ (9,600 hrs. @ $9.00 $9.20 (6,000 yds @ (6,150 yds @ $8.90 $8.70 ) ) $5.00 $6.40 ) ) 53400 53505 90000 88320 ) ) 30000 39360 60000 233400 $261,600 62000 243185 $232,115