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 Morton's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Morton's managers can benefit from the standard costing system. Static Budget (1,000 recliners) $ 505,000 Actual Results (980 recliners) 470,400 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 @ $ 9.20 / DLHr) 51,600 51,601 92,000 89,280 Variable Overhead (9,600 DLHr @ $ 9.30 / DLHr) (6,000 yds. @ $ 5.20 / yd.) (6,143 yds. @ $ 6.60 / yd.) 31,200 40,544 Fixed Manufacturing Costs: 60,600 62,600 Fixed Overhead Total Cost of Goods Sold 244,025 235,400 269,600 $ 226,375 Gross Profit