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 0 - X Data table 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 - X Requirements Flexible Budget Budget Amounts Static Budget Actual Results (1,025 recliners) (1,005 recliners) $ 527,875 492,450 per Unit Actual Units (Recliners) 54.735 54,810 Sales Revenue Variable Manufacturing Costs: Direct Materials 1. Prepare a flexible budget based on the actual number of recliners sold. 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. 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 (1,025 recliners x $515 each) (1,005 recliners x $490 each) Variable Manufacturing Costs: Direct Materials (6,150 yds @ $8.90 / yd.) (6,300 yds @ $8.70 / yd.) Direct Labor (10,250 DLHr @ $10.90 / DLHr) (9,850 DLHr @ $11.10 / DLHr) Variable Overhead (6,150 yds. @ $5.10 / yd.) (6,300 yds. @ $6.50 / yd.) Fixed Manufacturing Costs: 111,725 109,335 31,365 Direct Labor Variable Overhead Fixed Manufacturing Costs: 40,950 Fixed Overhead Fixed Overhead 62,730 64,730 Print Done Total Cost of Goods Sold Total Cost of Goods Sold 260,555 269,825 Gross Profit $ Gross Profit 267,320 $ 222,625 Print Done