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:

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.

Static Budget Actual Results (975 recliners) (955 recliners) $ 487,500 $ 458,400 52,065 52,087 109,200 Sales (975 recliners x $500 each) (955 recliners x $480 each) Variable Manufacturing Costs: Direct Materials (5,850 yds. @ $8.90 / yd.) (5,987 yds. @ $8.70 / yd.) Direct Labor (9,750 DLHr @ $11.20 / DLHr) (9,350 DLHr @ $11.30 / DLHr) Variable Overhead (5,850 yds. @ $5.30 / yd.) (5,987 yds. @ $6.70 / yd.) Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 105,655 31,005 40,113 60,255 62,255 252,525 260,110 $ 234,975 $ 198,290 Gross Profit