Rouse Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Rouse 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.) Rouse 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 Data table Static Budget Actual Results (1,025 recliners) (1,005 recliners) $ 517,625 $ 492,450 A 53,505 53,550 111,725 Sales (1,025 recliners x $505 each) (1,005 recliners x 5490 each) Variable Manufacturing Costs: Direct Materials (6,150 yds. @ $8.70 / yd.) (6,300 yds. @ $8.50 / yd.) Direct Labor (10,250 DLHr @ $10.90 / DLH) (9,850 DLHr@ $11.00 / DLH) Variable Overhead (6,150 yds. @ $5.10 / yd.) (6,300 yds. @ $6.50 / yd.) Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold Gross Profit 108,350 31,365 40,950 62,730 64,730 267,580 259,325 258,300 $ $ 224,870 Print Done Requirements 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 Rouse's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Rouse's managers can benefit from the standard costing system Print Done