Root Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Root 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 resuirements. Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Root 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 Choose from any list or enter any number in the input fields and then continue to the next question. Root Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Root 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 vanadio uveread Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit Requirement 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. Begin with the cost variances Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole doliar. Abbreviations used: AC = actual cost, AQ = actual quantity, FOH = fixed overhead, SC standard cost, SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost varianco Next compute the efficiency variances. Select the required formulas, compute the officiency variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar, Abbreviations used: AC = actual cost, AQ = actual quantity: FOH = fixed overhead: SC - standard cost: SQ = standard quantity) Choose from any list or enter any number in the input fields and then continue to the next question ? Root Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Root 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 dato.) Read the requirements: Next compute the efficiency variances, Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identity whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ= actual quantity, FOH = fixed overhead, SC = standard cost. SQ = standard quantity.) Formula Variance Direct materials efficiency variance Direct labor efficiency variance Now compute the variable overhead cost and efficiency variances, Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ - actual quantity: FOH = fixed overhead: SC standard cost; SQ standard quantity: VOH = variable overhead) Formula Variance VOH cost variance VOH officiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and Identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost: AQ - actual quantity: FOH =fixed overhead, SC = standard cost; SQ = standard quantity) Formula Variance Choose from any list or enter any number in the input fields and then continue to the next question Root Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Root 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 Formula Variance FOH cost variance FOH volume variance Requirement 3. Have Root's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a Job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that V of the overhead variances are Requirement 4. Describe how Root's managers can benefit from the standard costing system Standard costing helps managers do the following: M le 2 Choose from any list or enter any number in the input fields and then continue to the next question - m: CO Xards Data Table con rer Static Budget (1,000 recliners) $ 515,000 Actual Results (980 recliners) ari 3. 465,500 cod The 53,400 dird dire 53,444 mcd ad 94,000 91,200 Sales (1,000 recliners x $515 each) (980 recliners x $475 each) Variable Manufacturing Costs: Direct Materials (6,000 yds @ $8.90 / yd.) (6,143 yds. @ $8.70 / yd.) Direct Labor (10,000 DLHr @ $9.40 / DLHr) (9,600 DLHr @ $9.50 / DLHr) Variable Overhead (6,000 yds @ $5.20 / yd) (6,143 yds @ $6.60/yd.) Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 31,200 40,544 60,600 62,600 239,200 247.788 275,800 $ 217,712 Print Done