Cole Recliners manufactures leather recliners and uses fexble budgeting and a standard cost system. Cole allocates overhead based on yards of drect materials. The companys performance report includes the following solected data: (Click the icon to vew the solected data.) Read the reguiroments- Requirement 1. Prepare a flexible budgot based on the actual number of recliners told. (Round budget amounts per unt ta the nearest cent) Requilement 2. Concule the cost variance and the emiciency varianoe loe diect materiss and for drect labor for manufacturng overtess, compule the variable oremeod cost, variable overtiead efficency fiend overthead cost, and fiund orerthead volume varianoes. Round to the nearest dolly. Requirement 2. Compute the cost variance and the efficency variance for direct materials and for drect labor. For manutacturing overhead, compute the variable overhead cost, vaniable overhead efficiency, fired overthead cost, and foxd overhead volume variances. Round to the noarest dollar: Begin with the cost variances, Select the required formulas, compute the cost variances for direct materials and diect labor, and identily whether each variance is favorablo (F) or unfavorable (U). (Round your answers to the nearest whole dolla, Abbreviations used: AC= actual cost AQ= actual quartity; FOH= fixed overtead, SC= slandard cost, SQ= sfandard quanbly) Nuxt compule the officency variances: Select the fequired formulas, compule the efficiency variances for irrect maserials and drect labor, and identiy whether each variance is favorable (F) of Now compute the variable overhesd cost and efficiency variances. Select the required formulas, compuce the variable omerhead cost and enticiency variances, and idensfy whether each variance is Cole Reciners manufactures lesther recliners and uses flexble budgeting and a standard cost system. Cole allocates overhead based on yards of direct materlals. The company's performance report includes the folowing selected data: (Click the loon to wew the solected data.) Read the requirements Now computo the fixed overhesd cost and volume variances. Select the requited formulas, compute the foxed overhead cost and volume variances, and identily whecther each variance is tavorabil (F) or unfavorabla (U). (Round your answers to the nearest whole dollar. Abbreviations usod: AC= actual cost: AQ= actual quantity; FOH = foxed overhead, SC = standard cost SQ= standard quankity) Requirement 3. Have Cole's managers done a good job or a poor job controlling maserials, labor, and ovechead costs? Why? The variances computed in Requirement 2 wggest that the managers have done a job controling materials and labor costs. The labor efficiency variance help othet the diect labor cost variance and drect materials efficiency variance. Managees have done a deect maloria's cost variance and drec evidenced by the fact that of the overhead varlances are Requilrement 4. Describe how Cole's managen can benefit from the standard costing syatem. Data table Cole Recliners manutactures leather reciners and uses fexble budgeting and a standard cost system. Cole alocates overthad based on yards of direct materials. The company's performance eport includes the following selected data (Cick the iocn ta view the selected data.) Read the iefevirements
