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. 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 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 Requirements Budget Amounts per Unit 1. 2. Data table 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. 3. Have Root's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Root's managers can benefit from the standard costing system. Sales Print Done (1,000 recliners x $505 each) (980 recliners x $475 each) $ Static Budget (1,000 recliners) 505,000 Actual Results (980 recliners) 465,500 Variable Manufacturing Costs: Direct Materials Direct Labor (6,000 yds. @ $8.80/yd.) (6,143 yds. @ $8.60 / yd.) (10,000 DLHr @ $12.10/DLHr) (9,600 DLHr @ $12.30/DLHr) Variable Overhead (6,000 yds. @ $5.00 / yd.) (6,143 yds. @ $6.40 / yd.) 52,800 52,830 121,000 118,080 30,000 39,315 Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 60,000 62,000 263,800 272,225 $ 241,200 $ 193,275 Print Done