Question Help Mcknight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Mcknight allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Click the icon to view the selected data.) Read the requirements Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent) McKnight Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Enter any number in the edit fields and then click Check Answer. parts remaining Clear Al Check Answer Carrinhennun HW Score: 62.72%, i Data Table x 57 . td er Static Budget (975 Actual Results recliners) (955 recliners) $ 497,250 $ 453,625 49,725 Sales (975 recliners x $510 each) (955 recliners x $475 each) Variable Manufacturing Costs: Direct Materials (5,850 yds @ $8.50 / yd.) (5.987 yds @ $8.30 / yd.) Direct Labor (9,750 DLHI @ $9.40 / DLH) (9,350 DLH @ $9.60 / DLHR) Variable Overhead (5,850 yds. @ $5.30 / yd.) (5,987 yds @ $6.707 yd.) Eld. Manufacturing Conte 49,692 91,650 ing 89.760 31,005 40,113 -in Print Done Inswer Copyright 2021 Pearson Education Inc. All rights reserved. Terms of Use | Privacy Policy. Permission stion Data Table yard: 49,725 49,692 91,650 Variable Manufacturing Costs: Direct Materials (5,850 yds. @ $8.50 /yd.) (5,987 yds @ $8.30/yd.) Direct Labor (9,750 DLHr @ $9.40/DLH) (9,350 DLHr @ $9.60 / DLHR) Variable Overhead (5,850 yds @ $5.307 yd.) (5,987 yds @ $6.70 / yd) Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 89,760 31,005 40,113 60,255 62,255 232,635 241,820 Gross Profit $ 264.615 $ 211,805 Print Done nswer es leather recliners and uses flexible budgeting and a standard cost system. McKnight allocates overhea mand elect i Requirements ble by aresto Recl Bud 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 Mcknight's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how McKnight's managers can benefit from the standard costing system. Print Done elds Clear All