overhead based on yards of it Smith Recliners manufactures leather ollowing selected data: EE (Click the icon to view the selected data.) recliners and uses flexible budgeting and a standard cost system. Smith allocates Read the tequirements nearest cent.) Requirement 1 1. Prepare a flexible budget based on the actual number of recliners sold.(Round budget amounts per unit to the Smith Receliners Flexible Budget Budget Amounts per Unit 980 Actual Units(Recliners) Sales Revenue Variable Manufacturing Costs 510 499800 Direct Materials Direct Labor Variable Overhead 51 93 30 49980 91140 29400 Fxed Manufacturing Costs: 60000 Fixed Overhead Choose from any list or enter any number in the input fields and then continue to the next question Static Budget (1,000 recliners) Actual Results (980 recliners) Sales (1,000 recliners x $ 510 each) (980 recliners x $ 495 each) 510,000 485,100 Variable Manufacturing Costs: Direct Materials (6,000 yds. @ s 8.50 /yd.) (6,143 yds. @ $ 8.30/yd.) (10,000 DLHr@ $ 9.30/DLHr) 9,600 DLHr@$ 9.40/DLHr) (6,000 yds. 5.00/yd.) (6,143 yds. 6.40/yd.) 51,000 50,987 Direct Labor 93,000 90,240 Variable Overhead 30,000 39,315 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 60,000 234,000 276,000 $ 62,000 242,542 242,558 Print Done Requirement 2 Compute the cost anar e nd heen o ey va aree fo direct mate a s and or drect l or Foe man aching e er est o p e ne varate-head overhead cost, and fixed overhead volume variances Round to the nearest dolar vaase o ehe eo oe s I d Rom yor Begin with the ost vara ces Select te regred tormulas computo te oost variances kor diect materials and drect lator and deriy where each w o the nearest whole dolar Abbreviations used: AC actual cost AQ actual quantity: FOH-ixed overhead; SCslandard cost SQstandand quaty ee a berat. uteote Formula Variance Direct materials cost variance Direct labor cost variance Next compune the eficiency variances Select 7 required formas, compute the omciency variances drect manonala and drect labor your answers to the nearest whole dolir Abbreviations used AC actual s; AQ-actual quanity: POH fised overhead s0-ss 80sadand quanity) Formula ariance AQ-SQ) SC Drect materiais emoency vanace Direct labor efficiency variance Now c compute the variable overhead oost and efficiency variances Select the required formulas, compute the var iable overhoad oost and efficiency varianes and entity whether each varance isvorable F) ar d 00st SO-stran oarmy voi-- to the nearest ahole dollar Abbreviations used: AC-actual oost AQ-actual quarwry: FOH-hmi weheat SC- ow compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is tavor nfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC actual cost: AQ actual quantity, FOH-fixed overhead: SC standard cost: SQ standard quantity: VOH erhead.) Formula Actual FOH- Allocated FOH (AO-SO)X AC Variance .1 )-[ ] OH oost vanance emciency variarce ow compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identily whether each variance is favorable (F) or n Round your answers to the nearest whole dollar Abbreviations used: AC-actual cost; AQ-actual quantity: FOH-fixed overhead: S-standard cost: SO-standard quant ty Formula Variance OH cost variance Actual FOH- Budgeted FOH OH volume variance Budgeted FOH-Allocated FOH Requirement 3.Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a poor variancs heip ofset he avorable direct isbor cost varance and direct materials efcinyvariance.Managers have donea oor a job controling materials and labor costs. The drect maherials cost variance and drect labor efficiency ioe controling overtead costs as evidaniced by the lact thatsef the overhead variances are unfavorable Requirement 4. Describe how Smith's managens can beneft from the standard costing system Standand costing helps managers do the following Prepare the master budget etaret levels of performance for fexible budgets Set sales prices of products and services Decrease accounting costs any list or enter anw number in the inout fields and then continue to the next