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. AllNet Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 7,500 9,000 198,000 $ 11,000 242,000 Sales Revenue $ 22 $ 165,000 $ Variable Expenses 90,000 108,000 132,000 Contribution Margin Fixed Expenses 75,000 57,000 18,000 $ 90,000 57,000 33,000 $ 110,000 57,000 53,000 $ Operating Income AllNet Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 249,000 Variable Expenses 137,200 Contribution Margin 111,800 Fixed Expenses 58,500 53,300 Operating Income 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. AllNet Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 7,500 9,000 198,000 $ 11,000 242,000 Sales Revenue $ 22 $ 165,000 $ Variable Expenses 90,000 108,000 132,000 Contribution Margin Fixed Expenses 75,000 57,000 18,000 $ 90,000 57,000 33,000 $ 110,000 57,000 53,000 $ Operating Income AllNet Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 249,000 Variable Expenses 137,200 Contribution Margin 111,800 Fixed Expenses 58,500 53,300 Operating Income