Requirements quirements 1. 2. 3. 4. 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 Hassan Recliners' managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Hassan Recliners' managers can benefit from the standard cost system. Print Done - Selected Data Sales (1,000 recliners @ $495 each) (980 recliners @ $475 each) Variable Manufacturing Costs: Direct Materials Static Budget (1,000 recliners) 495,000 Actual Results (980 recliners) 465,500 (6,000 yds. @ $8.80 / yd.) (6,150 yds. @ $8.60 / yd.) 52,800 52,890 Direct Labor (4,600 DLHr @ $20.00 / DLHr) 92,000 (4,650 DLHr @ $19.20 / DLHr) 89,280 Variable Overhead (6,000 yds. @ $5.00 / yd.) 30,000 (6,150 yds. @ $6.40 / yd.) 39,360 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Print Done 60,000 62,000 234,800 243,530 260,200 $ 221,970 Hassan Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Hassan Recliners allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: View the selected data. Read the requirements. Hassan Recliners Flexible Budget Budget Amounts per Unit Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit