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:

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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.$)$includes the following selected data:

$($Click the icon to view the selected data.$)$

Data table

Requirements

Prepare a flexible budget based on the actual number of recliners sold.

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.

Have Smith's managers done a good job or a poor job controlling materials,

labor, and overhead costs? Why?

Describe how Smith's managers can benefit from the standard costing

system.