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 cather rcciners and uses fexbir hudgeting and a standard cost system. Stenback allocates overhead based on yards of direct materials. The company's performance report includes the falowing selccted data: Click the icon to view the selected data. O DATA Table Read the requirements. Requirement 1. Prepare a axble budget based on the actual number of reciners said. (Round budget amounts par unit in the nearest cont.) Stenback Recliners Static Budget Results Flexible Budget 1975 1955 Budget recliners) recliners 1975 recliners per Unit Salas x; 05 cach) 5 492 575 1955 recliners Aclul Units Racines X$ 480 each) 5 458400 Sales Ravenue 875 4 58400 Variable Manufacturing Costs: Variable Manufacturng Costs: 15,850 yds Dret Materials Direct Materials $ 8.50 / yd.) 49725 Drest Labor 15,987 yds 29,692 variable Overhead 19.750 DLH Fbad Manufacturing Coats Direct Labor @59.20 / DLH) 89.700 Foed Overhead 19350 DLHO $ 9.30 / DLH) 38,955 Total Cost of Goods Sold Variable 15,850 yds Gross Pratt Overhead $6.30 / yd.) 31.005 15,987 yds Requirement 2. Compute the cast VARIANCA and the efficiency wariance for drac materials and for direct labor. For manufacturing overhead, compute the variabi @ $6.70 7y.) 40. 113 folum var Round to the nearest dollar Begin with the post vanandes. Select the required formulas, compute the cost variances for direct materias and direct labor and identity whether each variance Fixed Manufacturing Costs revisions used: AC = actual cost; AG = actual quantly; FOH = fixed overhead: SC - standard cost 30 - standard quantity.) Fleed Overhead 60 255 52.255 Formula Total Cost of Goods Sold 230.685 239,015 Direct materials coat variance = S Gices Pront 251 690 $ Direct labor con variance 219,385 = Next compute the efficiency variantes. Select the required formulas.compute the efficiency variantes for drect materials and direct labur, and identify whether le dolar. Abbreviations used: AC - actual custAQ - actual quantity, FOH -fixed overhead: SC - standard costSa - standard cuantity) Formula Direct materials officiency variance = Direct labor cancy VATANDA Now compule the variable overhead custard eticiency war arces. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable Fur unfavorable (U) (Round your answers to the nearest whole dollar. Abbreviations used AC - actual col; AQ - actual quantity. FOH = xed overhead: S = standard core 30 = 8tandard quantity: VOH = variable overhead.) Formula VOH cost variance VOH Mandy variance Nuw compule the fixed overhead custand volume variances. Select the recuired formukss, compute the face overhead cost and volume variances, and identify whether exc variance is favorable (F) or unfavorable U). Round your answers to the nearest whole dollar. Abbreviations used: AC - actual cost AQ- actual quantity, FOH = feed overhead: SC = standard el: SQ = standard quantity) Famula FOH cost variance FOH volume varlance = Print Done VA Requirement 3. Have Stenback's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance. The variances computed in Requirement 2 suggest that the managers have done a V job controlling materials and labor costs. The Managers have done a job controlling overhead costs as evidenced by the fact that 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: Stenback Recliners manufactures cather rcciners and uses fexbir hudgeting and a standard cost system. Stenback allocates overhead based on yards of direct materials. The company's performance report includes the falowing selccted data: Click the icon to view the selected data. O DATA Table Read the requirements. Requirement 1. Prepare a axble budget based on the actual number of reciners said. (Round budget amounts par unit in the nearest cont.) Stenback Recliners Static Budget Results Flexible Budget 1975 1955 Budget recliners) recliners 1975 recliners per Unit Salas x; 05 cach) 5 492 575 1955 recliners Aclul Units Racines X$ 480 each) 5 458400 Sales Ravenue 875 4 58400 Variable Manufacturing Costs: Variable Manufacturng Costs: 15,850 yds Dret Materials Direct Materials $ 8.50 / yd.) 49725 Drest Labor 15,987 yds 29,692 variable Overhead 19.750 DLH Fbad Manufacturing Coats Direct Labor @59.20 / DLH) 89.700 Foed Overhead 19350 DLHO $ 9.30 / DLH) 38,955 Total Cost of Goods Sold Variable 15,850 yds Gross Pratt Overhead $6.30 / yd.) 31.005 15,987 yds Requirement 2. Compute the cast VARIANCA and the efficiency wariance for drac materials and for direct labor. For manufacturing overhead, compute the variabi @ $6.70 7y.) 40. 113 folum var Round to the nearest dollar Begin with the post vanandes. Select the required formulas, compute the cost variances for direct materias and direct labor and identity whether each variance Fixed Manufacturing Costs revisions used: AC = actual cost; AG = actual quantly; FOH = fixed overhead: SC - standard cost 30 - standard quantity.) Fleed Overhead 60 255 52.255 Formula Total Cost of Goods Sold 230.685 239,015 Direct materials coat variance = S Gices Pront 251 690 $ Direct labor con variance 219,385 = Next compute the efficiency variantes. Select the required formulas.compute the efficiency variantes for drect materials and direct labur, and identify whether le dolar. Abbreviations used: AC - actual custAQ - actual quantity, FOH -fixed overhead: SC - standard costSa - standard cuantity) Formula Direct materials officiency variance = Direct labor cancy VATANDA Now compule the variable overhead custard eticiency war arces. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable Fur unfavorable (U) (Round your answers to the nearest whole dollar. Abbreviations used AC - actual col; AQ - actual quantity. FOH = xed overhead: S = standard core 30 = 8tandard quantity: VOH = variable overhead.) Formula VOH cost variance VOH Mandy variance Nuw compule the fixed overhead custand volume variances. Select the recuired formukss, compute the face overhead cost and volume variances, and identify whether exc variance is favorable (F) or unfavorable U). Round your answers to the nearest whole dollar. Abbreviations used: AC - actual cost AQ- actual quantity, FOH = feed overhead: SC = standard el: SQ = standard quantity) Famula FOH cost variance FOH volume varlance = Print Done VA Requirement 3. Have Stenback's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance. The variances computed in Requirement 2 suggest that the managers have done a V job controlling materials and labor costs. The Managers have done a job controlling overhead costs as evidenced by the fact that 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