Question Help Seth Redliners manufactures leather rediners and uses flexible budgeting and a standard cost system. Smith allocates overhead based on yards of direct materials. The company's performance report includes the following selected data Click the loan to view the selected data Read the moment Data Table Requirement 1. Prepare a flexible budgemoed on the actual number of reclinerasi timith Peelinen Flexible Budget Static Budget Actual Results (1.000 recliners) 1980 recliners) $ 500.000 5 470,400 Budget Amounts per un 52.200 52.216 91.000 Sales (1.000 recliners x $500 each) (080 recliners x 5480 each) Variable Manufacturing Costs Direct Materials (5.000 yds 58.70/yd.) (6,143 yds 58.50/ yd) Direct Labor (10,000 DL 99.10 / DLHO (9,800 DLH 59.20 / DLH) Variable Overhead 15.000 yds 3520/yd) 16,143 yds @ $6.00/yd) Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold Gross Pront 88 320 Actul Unit (Racines Sales Revenue Variable Manufacturing Costs Direct Material Direct Labor Variable Overhead Fred Manufacturing Costs Fixed Overhead Total Cast at Goods Sold Gros Pro 31.200 40.544 50.000 89.000 243.680 255.000 5 221,720 Requirement 2 Compute the cost anance and the efficiency variance for direct mate fixed overhead cost and fred overhead volume variance. Round to the nearest dollar Print Done Begin with the cost varianon Select the required formulas, compute the cost variance answers to the nearest whole Goa Abbrevis AC actual cost AG =Guantity: FOH sed vestad, SC standard cost Sandard Gaily) Formula Vanance Die materials cot varande Choose from any ist or enter any number in the input fields and then continue to the next question. ements stvarance the eficiency variances Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). mswers to the nearest whole dollar. Abbreviations used: AC actual cost: A actual quantity: FOH - foed overhead; SC standard cost: SQ - standard quantity) Formula Variance efficiency variance Requirements iciency variance the variable overhead costa red formulas, compute the ble (F) KU). (Round your answers (AC-SC) AQ used: AC = actual contA 1. Prepare a flexible budget based on the actual number of recliners sold. mad) (AC-SC) 50 2. Compute the cost variance and the efficiency variance for direct materials (AQ-SQ) - AC and for direct labor. For manufacturing overhead, compute the variable Variance overhead cost, variable overhead officiency, fixed overhead cost, and food (AQ - SQ) SC overhead volume variances. Round to the nearest dollar Actus FOH - Allocated FOH 3. Have Smith's managers done a good job or a poor job controlling materials, variano Actual FOH-Budgeted FOH labor, and overhead costs? Why? the fixed overhead cost and Budgeted FOH - Allocated FOH 4. Describe how Smith's managers can benefit from the standard costing mulas, compute the fixed system. Round your answers to the nearest whole dollar. Abbreviations used: AC = actual costAQ Formula Variance rce Print Done srance 1. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The he help offset the direct labor cost variance and direct materiais efficiency variance Managers have done a the overhead variances are direct materials cost variance and direct labor job controling overhead costs as evidenced by the fact Describe how Smith's managers can benefit from the standard costing system my list or enter any number in the input fields and then continue to the next