Static Budget Actual Results (955 recliners) (975 recliners) (975 recliners x $ 510 each) $ Sales 497,250 (955 recliners x $ 490 each) $ 467,950 Variable Manufacturing Costs: (5,850 yds. @ $ 8.50 / yd.) Direct Materials 49,725 (5,987 yds. @ $ 8.30 / yd.) 49,692 (9,750 DLHr @ $ 9.30 / DLHR) Direct Labor 90,675 (9,350 DLHr @ $ 9.50 / DLHr) 88,825 (5,850 yds. @ $ 5.30 / yd.) Variable Overhead 31,005 (5,987 yds. @ $ 6.70 / yd.) 40,113 Fixed Manufacturing Costs: 60,255 62,255 Fixed Overhead 231,660 240,885 Total Cost of Goods Sold $ 265,590 $ 227,065 Gross Profit Juda Rodinars manutachures leather rediners and uses flaxble budgeting and a standand coat system. Juda alocats overhead aased on yards of dract matorials. The company's performance raport Indudes the folloaing selecied cata (Click the ican to view the selecled daia, Reed the raquinemants Flexible Budget Budget Amounts per Unit Actual Units (Recirers) Sales RevenuO during Costs: Direct Malerials Dirsct Labon Variable Overhead Fixed Manufacturing Coets: Fbxcd Overhcad Tolsl Coet of Goods Sokl Groes Proft r cirect iabor. Far manufecturing overhead, compute the varable oerheac cost, variable averhead cfficiency, foxod averhead cost, and fxed overhead walume vanances. Raurd ta the nearest dalar Requirement 2. Compute the cast vanance and the eiciency variance t direct matenals and , ( Rourd your anwers to L e neareet whole dollar. Abbrevislions used: AC-actual cosl; AQ-adual quantily ederulss, mpue he Guel vaners lor dire maleras and direct labor, and identify whelher esch variere is fayorable (Fior unlavonki .el ne r EQH- Formula Marianes Diract materials cOst walance Direct labor ccst vanance. Next compule the efficiency varances. Select the required formulas, compute the efficiency variances for direct malerials and diect labor, and icentify whether each variance is favarable F) ar unfavarable (U (Round your answers to the nearest whole dollar. Abbreviations used: AC aual cost AQ auel quanity, FOH fied overheed; SC-standerd oos SQ-stendard quenily Farmula Variance Direct materials emciency verlance Diroct lebor ofciency vartance e rearest whole dollar, Abbreviations used: AC- nd efficiency vaeriances, and icentiy whether each yariance is favarable F)or unfayarable U, (Round your answers o Famuia Martanca VOH cost variance VOH emclencw variance fixed overhcod cost and volume vadances. Sclect the reaured formu ps computo ) ar unfavarable (U ncarcst whol dollar, Abbreviabians used: AC actual cost: Now comcute ftxed overhead cost nd valume variances, and identty whether cach vanance is favorable (Round your arswers to the AQ actual quantity; FOH- fixed overhead; SC-siandard cost; SQ-standard quantity. Formula Varianos FOH cost variance FOH volume varieroe Requirament 3. Have Juda's managers dona a good joh or a poor controlling matadals, lebor, aend overhaad ccsts? Whw? dict matanals cast varianco and dircct labor cfmcienay variance heip offset the drect lahor post variance aod diroct materiais The variancos compunod in Roquiroment 2 suggost that the managers have dono a ab cortrollrg materials and labor costs The o the overheed varlances are efficiency vaience Managers heve done a controlling ovemead costs as eviderced by the fact that Standard costing helps managers do the following
