Stenback Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Stenback allocates overhead based on yards of direct materials. The company's performance report includes the following selected data:

Stenback Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Stenback allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: B. (Click the icon Requirements Data Table Read the requirem Requirement 1. PI 1. 2. Static Budget (975 recliners) Actual Results (955 recliners) $ 502,125 $ 458,400 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 Stenback's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Stenback's managers can benefit from the standard costing system. 3. 50,310 4. 50,291 Actual Units (Recli Sales (975 recliners x $515 each) (955 recliners x $480 each) Variable Manufacturing Costs: Direct Materials (5,850 yds. @ $8.60 / yd.) (5,987 yds. @ $8.40 / yd.) Direct Labor (9,750 DLHr @ $11.00 / DLHr) (9,350 DLHr @ $11.10 / DLHr) Variable Overhead (5,850 yds. @ $5.30 / yd.) (5,987 yds. @ $6.70 / yd.) Fixed Manufacturing Costs: 107,250 Sales Revenue Print Done 103,785 Variable Manufacty 31,005 Direct Materials 40,113 Direct Labor Variable Overhead 60,255 62,255 Fixed Overhead Fixed Manufacturing Costs: Total Cost of Goods Sold 248,820 256,444 $ 253,305 $ 201,956 Choose from any list or enter any number in the input fields and then continue to the next question. Gross Profit Save for Later Print Done Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Stenback 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 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 Variance Direct materials cost variance Direct labor cost variance 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 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; SQ = 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 Variance FOH cost variance FOH volume variance = Requirement 3. Have Stenback'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 V of the overhead variances are Requirement 4. Describe how Stenback's managers can benefit from the standard costing system. Standard costing helps managers do the following