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 HERE Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) - X Data table Smith Recliners Flexible Budget Budget Amounts per Unit Static Budget (1,000 recliners) $ 500.000 Actual Results (980 recliners) Requirements $ 465,500 Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials 51,600 Direct Labor 51,601 Sales (1,000 recliners x $500 each) (980 recliners x $475 each) Variable Manufacturing Costs: Direct Materials (6,000 yds @ $8.60 / yd.) (6,143 yds. @ $8.40 / yd.) Direct Labor (10,000 DLHI @ $11.00 / DLH) (9,600 DLHr @ $11.20 / DLHr) Variable Overhead (6,000 yds. @ $5.20 / yd.) (6,143 yds. @ $6.60 / yd.) Fixed Manufacturing Costs 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 110,000 Variable Overhead Fixed Manufacturing Costs: 107.520 Fixed Overhead 31,200 Total Cost of Goods Sold 40,544 Gross Profit Fixed Overhead 62,600 Print Done 60,600 253,400 262 265 Total Cost of Goods Sold $ $ 246,600 $ 203,235 Gross Profit Print Done