McKnight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. McKnight 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.) = Homework: Chs 21, 22, and 23 Homey - X 35 points Save Data table ance report includes the following selected data: McKnight Recliners manufactures leather recliners and uses flexib (Click the icon to view the selected data.) Static Budget (1,000 recliners) $ 495,000 Actual Results (980 recliners) Read the requirements. $ 465,500 Requirement 1. Prepare a flexible budget based on the actual nu 51,600 51,601 Mcknight Recliners Flexible Budget Budget Amounts Sales (1,000 recliners x $495 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 @ $9.20 / DLHr) (9,600 DLHr@ $9.40 / DLHr) Variable Overhead (6,000 yds @ $5.00 / yd.) (6,143 yds. @ $6.40 / yd.) Fixed Manufacturing Costs: 92.000 90,240 per Unit 30.000 39,315 Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs Direct Materials 60,000 62,000 Fixed Overhead Total Cost of Goods Sold 233,600 243,156 Direct Labor $ 261,400 $ 222,344 Gross Profit Variable Overhead Fixed Manufacturing Costs: - X Requirements Fixed Overhead Print Done Total Cost of Goods Sold Gross Profit 1. 2. 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 McKnight's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how McKnight's managers can benefit from the standard costing system. 3. 4. Help me solve this Demodocs example Get more help