Smith Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Smith 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 Direct labor cost variance (AC-SC) XAQ 985 U 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 (AQ - SQ) x SC 2,295 U Direct labor efficiency variance (AQ - SQ)X SC = $ 1,880 F 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 Actual VOH - (SC XAQ) VOH efficiency variance (AQ - SQ) SC Choose from any list or enter any number in the input fields and then click Check Answer. Data Table - X Static Budget Actual Results (1,025 recliners) (1,005 recliners) $ 527,875 482,400 52,275 52,290 Sales (1,025 recliners x $ 515 each) (1,005 recliners x $ 480 each) Variable Manufacturing Costs: Direct Materials (6,150 yds. @ $ 8.50 / yd.) (6,300 yds. @ $ 8.30 / yd.) Direct Labor (10,250 DLHr @ $ 9.40 / DLHr) (9,850 DLHr@ $ 9.50 / DLHr) Variable Overhead (6,150 yds. @ $ 5.10 / yd.) (6,300 yds. @ $ 6.50 7 yd.) Fixed Manufacturing Costs: 96,350 93,575 31,365 40,950 Fixed Overhead 62,730 64,730 Total Cost of Goods Sold 242,720 251,545 Gross Profit 285,155 $ 230,855 Print Done Requirements - ctm e ni ng Ab mil als 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 Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how Smith's managers can benefit from the standard costing system. effi th ta e 69 vari (R ver Print Done Fial