Preston recliners, manufactures leather recliners and you just flexible budgeting in a standard cost system. Preston allocate overhead based on yards of direct materials. The companies performance report includes the following selected data.

Hrad the II (ciak tho voon to vicw the selecded anta) udgeting and a standard cost system. Preston alocales overhead based or yards of direct materials. The companys performance report inclur ber of reciners sold. (Round budget amounts per unit to the nearest cent.) Data table visiance for mpule the : SO - shancard euantity voH = yariablit gvempad) Id. (Round budget amounts per unit to the nearest cent.) Requirements 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 Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Preston's managers can benefit from the standard costing system. te the eflicioncy variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavor Hrad the II (ciak tho voon to vicw the selecded anta) udgeting and a standard cost system. Preston alocales overhead based or yards of direct materials. The companys performance report inclur ber of reciners sold. (Round budget amounts per unit to the nearest cent.) Data table visiance for mpule the : SO - shancard euantity voH = yariablit gvempad) Id. (Round budget amounts per unit to the nearest cent.) Requirements 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 Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Preston's managers can benefit from the standard costing system. te the eflicioncy variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavor