Morton Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Morton 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.) Morton Recliners Flexible Budget Budget Amounts Data table - X Requirements (1,000 recliners x $505 each) (980 recliners x $480 each) $ Static Budget (1,000 recliners) 505,000 Actual Results (980 recliners) 1. 2. $ 470,400 Variable Manufacturing Costs: Direct Materials 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. 3. Have Morton's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? (6,000 yds. @ $8.60/yd.) (6,143 yds. @ $8.40/yd.) 51,600 4. 51,601 Describe how Morton's managers can benefit from the standard costing system. Direct Labor (10,000 DLHr @ $10.20/ DLHr) (9,600 DLHr @ $10.30 / DLHr) Variable Overhead (6,000 yds. @ $5.20/yd.) 102,000 98,880 31,200 Print Done (6,143 yds. @ $6.60/yd.) 40,544 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 per Unit Sales Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 60,600 62,600 245,400 253,625 259,600 $ 216,775 - X