Rouse Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Rouse 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.) Data Table Read the requirements - X Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Static Budget (975 recliners) $ 497,250 Actual Results (955 recliners) Rouse Recliners Flexible Budget Budget Amounts Requirements x $ 467,950 per Unit 51,480 1 2. 51,488 Actual Units (Recliners) Sales Revenue Sales (975 recliners x $510 each) (955 recliners x $490 each) Variable Manufacturing Costs: Direct Materials (5,850 yds. @ $8.80 / yd.) (5,987 yds. @ $8.60 / yd.) Direct Labor (9,750 DLHr@ $11.80 / DLHr) (9,350 DLHr @ $11.90 / DLH) Variable Overhead (5,850 yds. @ $5.30 / yd.) (5,987 yds. @ $6.70 / yd.) Fixed Manufacturing Costs: 115,050 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 Rouse's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Rouse's managers can benefit from the standard costing system Variable Manufacturing Costs Direct Materials 111,265 3. 31,005 Direct Labor 40,113 4. Variable Overhead Fixed Manufacturing Costs: Fixed Overhead Fixed Overhead 60,255 62,255 Print Done Total Cost of Goods Sold 257,790 265,121 $ Total Cost of Goods Sold 239,460 $ 202.829 Gross Profit Gross Profit Print Done 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 effic 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). (Roul overhead; SC = standard cost; SQ = standard quantity.) Premeny=fixed 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.) Rouse Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Rouse allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: E (Click the icon to view the selected data.) Read the requirements. 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 or 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 = Next compute the efficiency variances. Select the required formulas, compute the efficiency vari fixed overhead; SC = standard cost; SQ = standard quantity.) U 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 Rouse'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 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 Rouse Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Rouse 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 TACUUvumuru, JUTTUU UUU, Uw Jurruru quarry 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 Rouse'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 Rouse's managers can benefit from the standard costing system. Standard costing helps managers do the following