The cormpinyy's porformance report includes the following selected data (Cfak the icen fo view the soiected datia) Rwad the matifimentis Requirements 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 McKnight's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 4. Describe how McKnight's managers can benefit from the standard costing system. Data table Data table Requirement 1. Prepare a flexible budget based on the actual number of recliners sold (Round budget amounts per unii to the nearest cent) Budget Amounts per Unit Ictual Units (Recliners) Cales Revenue ariable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead ixed Manufacturing Costs: Fixed Overhead otal Cost of Goods Sold ross Profit variatile overhead eficiency, flxed ovethead cost, and fiend overhead volume variancen. Round to the hemarest dollar Begin with the cost variances. Select the requered fomilan, compute the cost vantances for direct matacials and direct labor, and identify whither each varlance is taverable (F) or Thandard quaritity Next compite the eftichency variances Select the required fonmulas, compule the veliciency varlances for direct matetials and dired labot, and identily whiether each varianci is standord coml, 50 a tandard gdantily.1 Now compute the varlable overhead cost and efficency variances Sulect the required formulas compelo the varibble oveshead cost and efliciency variances and ideivty whethee Now compute the variable averhead cost and efficiency variances Select the requied formulas, cormpebe the variable cveitheat cost and elsiciency variances, and identify whether Now compule the fued overtiead cost and volume variances Seloct the iequired formulas compute the foxed overhead cost atid volume variances, and iderilif whe ther asch Requirement 3. Mave Modonghirs managers daria a pood job ar a poor fob conifolling maeilak labor, and overiead casta? Whry? The variances computed in Requirement 2 suggest that the managen have done it oot controling maknials aisd laborcosil the direct matiatals cost valasce and diroct labor eficiencv vouriance holp offset thie direct labor cost varianco and drect nLatediabs efliciency vaiance Mabaqer thre done a I formulas, compute the fixec whole dollar. Abbreviations olling materials, labor, and ov job controlli labor cost variance and direc Requirement 3. Have McKnight's managers done a good job or a poor job controling materials, labor, and owerhedd costs? Why? The variances compuled in Requicement 2 suggest that the managers have done a job conltoling materials and labor costs. The variance and direct labor efficiency variance help olisit the direct labor cost varkence and dinect materials efficiency vatiance. Manageis have Gonit a job controlling overhead casts as evidenced by the fact that of the cverhead variances are Requirement 4 . Desoibe how MckCnighes managers can benelit trom the standard cosing systom Standard costing himpes managen do the following geting and a standard cost system. Mcknight alloce ob controlling materials, labor, and overhead costs? zve done a job controlling materials an direct labor cost variance and direct materials effic le overhead variances are e standard costing system FOHl cost variance FOH wolume variance = Requirement 3. Have Mcknighif s managens donio a good job of a poor job controlling matorials, labot, and oveitheod costs? Why? The varlances computed in Requirement 2 suggost that the managers have done a jab conltcling inaterials and labor cosis. The varianci and dired labor eniciancy variance help offet the lob controsing oveithad costs as evidenced by the Lact that Regulrement 4. Doscrbe how Mcknights managem can benefi from the standard, good Standard costing halpt manogers do the following