Smith Recliners manufacturos 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. Requirement 1. Prepare a flexible budget based on the cont.) (Round budget amounts per unit to the nearest Smith 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 Requirement 2. Compute the cost variance and the officiency variance for direct materials and for direct labor. For manufacturing overhead, compute the variable overhead cost, variable overhead officiency, fixed overhead cost, and fixed overhead volume variances. Requirement 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. Begin with the cost variances. Select the required formulas, compute the cost 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 Direct materials cost variance Direct labor cost variance - Variance IL 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 L = E Direct labor efficiency variance 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: SO-standard quantity: VOH - variable overhead.) Formula Variance VOH cost variance Choose from any list or enter any number in the input fields and then continue to the next question O Type here to search 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. 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: S - standard quantity: VOH variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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) Formula Varianen FOH cost variance FOH volume variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Smith's managers can benefit from the standard costing system Read the requirements Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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 - foed overhead: SC standard cost: SQ = standard quantity) Formula Variance FOH cost variance - FOH volume variance - Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the and direct materials officiency variance Managers have done a job controling overhead costs as evidenced by the fact that or the overhead variances are Requirement 4. Describe how Smith's managers can benefit from the standard costing system, Standard costing helps managers do the following Choose from any list or enter any number in the input fields and then continue to the next question Type here to search yards of direct materials. The company's performance report includes the following selected data: (Click A Data Table Read the Lume Now comp variances Abbreviati Static Budget (1,025 recliners) S Actual Results (1,005 recliners) 477,375 FOH cost FOH volur Requirem 54,735 54,810 95,325 costs. ariance The variar The and direct of Sales (1,025 recliners x $ 500 each) (1,005 recliners x $ 475 each) Variable Manufacturing Costs: Direct Materials (6,150 yds @ $ 8.90 / yd.) (6,300 yds @ S 8.70 / yd.) Direct Labor (10,250 DLHr@ $ 9.30 / DLH) (9,850 DLH @ $ 9.40 / 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 92,590 that 31,365 40,950 Requirem Standard V 244,155 268,345 $ 64,730 253,080 224,295 Print Done Choose from any list or enter any number in the input fields and then continue to the next question job c m the standard cost Create new products Decrease accounting costs Develop more efficient production methods Identify performance standards Increase production levels Increase sales volume Prepare the master budget Set sales prices of products and services Set target levels of performance for flexible budgets Read the requirements Now compute the foxed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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) Formula Variance FOH cost variance FOH volume variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? e The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and n cy variance Managers have done a job controlling overhead costs as evidenced by the fact that favorable Ariances are how Smith's managers can benefit from the standard costing system Standard costing helps managers do the following: Reg unfavorable Choose from any list or enter any number in the input fields and then continue to the next question O Type here to search Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost all VIII 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.) Variance Formula FOH cost variance FOH volume variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? job controlling materials and labor costs. V direct labor cost variance i sts as evidenced by the fact that good The variances computed in Requirement 2 suggest that the managers have done a The direct materials cost variance and direct labor efficiency variance and direct materials efficiency variance Managers have done a job co of the overhead variances are Requirement 4. Describe how Smith's managers can benefit from the standard cost Standard costing helps managers do the following: poor reasonable Choose from any list or enter any number in the input fields and then continue to the next ques O Type here to search Smith Recliners manufactures leather recliners and usus De U yuyul 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 Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume 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.) Formula Variance FOH cost variance - FOH volume variance - Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhe d by the fact that of the overhead variances are favorable Requirement 4. Describe how Smith's managers can benefit from the standard costing system unfavorable Standard costing helps managers do the following: o the following Up Choose from any list or enter any number in the input fields and then continue to the next Smith Rediners 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: m ok the icon to view the selected data) Read the requirements Show Now compute the bed overhead cost and volume variances Select the required formulas, compute the forced overhead cost and volume 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: S - standard quantity) Variance Formula FOH cost variance FOH volume variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor and overhead costs? Why? The various computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor officiency variance help offset the direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Smits managers can benefit fro good Standard costing helps managers do the following: poor resonable Up nex Choose from any list or enter any number in the input fields and then continue to the next question Match correct a. Bend Type here to search Formula Variance FOH cost variance FOH volume variance - Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Describe how Smith's managers can benefit from the standard costing system, helps managers do the following: none Up ME Choose from any list of enter any number in the input fields and then continue to the next question cor Type here to search 0 9 ds of direct materials. The company's performance report includes the following Click the icon to view the selected data) Read the requirements Now compute the fixed overhead cost and volume variances Select the required formulas, compute the fixed overhead cost and volume 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) Varande Formula FOHost variance FOH volume variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materiais eficiency variance Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how Smith's from the standard costing system Standard costing helps managers do th favorable unfavorable Choose from any stor y number in the inputs and then continue to the next question VOH cost variance VOH efficiency variance = (AC-SC) x AQ Now compute the fixed overhead variances, and identify whether e (AC-SC) X SQ Abbreviations used: AC actual: (AQ - SQ)X AC (AQ - SQ)X SC Actual FOH - Allocated FOH FOH cost variance Actual FOH - Budgeted FOH FOH volume variance = Budgeted FOH - Allocated FOH quired formulas, con ble (U). (Round your verhead; SC = standa Variance Requirement 3. Have Smith's managers done a good job or a poor job controlling materials, lab Choose from any list or enter any number in the input fields and then con Direct materials efficiency variance Direct labor efficiency variance rod formulas, compute the variable overhead cost an able (U). (Round your answers to the nearest whole rhead: SC standard cost: SQ - standard quantity: Now compute the variable overhead cost a officiency variances and Identity w hor (ACSC) AO dollar Abbreviations used: AC - actual cos (AC-SC)X SO variable overhead) (AQ - SQ)X AC (AQ - SQ)X SC VOH cost variance Achial FOH - Allocated FOH VOH officiency variance Actual FOH - Budgeted FOH Budgeted FOH - Allocated FOH Now compute the foved overhead cost and volume Vivian S tu Variance d ime that VIDU yards of direct materials. The company's performance report incluse Click the icon to view the selected data) Read the requirements Fixed Overhead Total Cost of Goods Sold Show Exp Gross Proft Requirement 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 officiency, fixed overhead cost and fixed overhead volume variances Round to the nearest dollar Begin with the cost variances Select the required formulas, compute the cost 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: A actual quantity, FOH food overhead: SC standard cost 50 standard quantity) Formula Varance Direct materials cost variance Direct labor cost variance (AC-SC) XAQ Next compute the efficiency variance and identify whether each varianna (AC-SC) SO used AC actual cost: AQ - actual (AQ - SQ) AC (AQ - SQ)X SC Actual FOH - Allocated FOH Direct materiais eficiency variance Actus FOH - Budgeted FOH Direct labor efficiency variance Budgeted FOH - Allocated FOH he officiency variances for direct materials and direct labor your answers to the nearest whole dollar Abbreviations dard cost, SO = standard quantity) Now compute the variable overhead cost and officiency variances Select the c o m