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.) Data Table Read the requirements. Requirement 1. Prepare a flexible budget based on the actual number of recling Static Budget (975 recliners) 497,250 Actual Results (955 recliners) Root Recliners Flexible Budget Budget Amounts Sales $ (975 recliners x $ 510 each) (955 recliners x $ 495 each) $ 472.725 per Unit Variable Manufacturing Costs: Direct Materials 51,480 Actual Units (Recliners) 51.488 Sales Revenue Direct Labor 90,675 Variable Manufacturing Costs: (5.850 yds. @ $ 8.80 / yd.) (5,987 yds @ $ 8.60 / yd.) (9,750 DLHr@ $ 9.30 / DLHr) (9,350 DLHr@ $ 9.40 / DLHr) (5.850 yds. @ $ 5.30 / yd.) (5,987 yds @ $ 6.70 / yd.) 87,890 Variable Overhead 31,005 Choose from any list or enter any number in the input fields and then contin 40,113 Variable Manufacturing Costs: Direct Materials Variable Manufacturing Costs: Direct Materials Direct Labor 51,480 51,488 Variable Overhead Fixed Manufacturing Costs: Direct Labor 90,675 (5,850 yds @ $ 8.80 / yd.) (5.987 yds. @ $ 8.60 / yd.) (9,750 DLHr@ $ 9.30 / DLHr) (9,350 DLHr@ $ 9.40 / DLHr) (5.850 yds. @ $ 5.30 / yd.) (5,987 yds @ $ 6.70 / yd.) Fixed Overhead 87,890 Variable Overhead 31,005 Total Cost of Goods Sold 40,113 Gross Profit Fixed Manufacturing Costs: Requirement 2. Compute the cost variance and the efficiency variance for dired and five derhandelimarienses and ta thamanan dollar 60,255 62.255 Fixed Overhead Total Cost of Goods Sold 233,415 241,746 Choose from any list or enter any number in the input fields and then contin S 263,835 $ 230,979 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 dollar. 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 variance Next compute the efficiency 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). (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. Next compute the efficiency 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). (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 efficiency 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 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 V job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the V direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are v Requirement 4. Describe how Root's managers can benefit from the standard costing system. Standard costing helps managers do the following