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 per Unit Actual Units (Recliners) Sales Revenue NI_P-LI. AN--.--.--.--. Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Data Table - X Static Budget Actual Results (1,000 recliners) (980 recliners) $ 505,000 $ 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 @ $8.60 / yd.) (6,143 yds @ $8.40 / yd.) Direct Labor (10,000 DLHr @ $10.20 / DLHr) (9,600 DLHr @ $10.30 / DLHr) Variable Overhead (6,000 yds. @ $5.20/yd.) (6,143 yds @ $6.60 / yd.) Fixed Manufacturing Costs: 102,000 98,880 31,200 40,544 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 60,600 62,600 245,400 253,625 $ 259,600 $ 216,775 Gross Profit i Requirements - X 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