White Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. White 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. White Recliners Flexible Budget Requirements Budget Amounts per Unit 1. 2. 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 White's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how White's managers can benefit from the standard costing system Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead 3 4. Print Done Total Cost of Goods Sold Gross Profit Enter any number in the edit fields and then click Check Answer. Data Table Static Budget (1,000 recliners) $ 515,000 Actual Results (980 recliners) $ 485,100 53,400 53,444 Sales (1,000 recliners x $515 each) (980 recliners x $495 each) Variable Manufacturing Costs: Direct Materials (6,000 yds. @ $8.90 / yd.) (6,143 yds. @ $8.70 / yd.) Direct Labor (10,000 DLHr @ $9.30 / DLHr) (9,600 DLHr @ $9.50 / DLHr) Variable Overhead (6,000 yds. @ $5.20 / yd.) (6,143 yds. @ $6.60 / yd.) Fixed Manufacturing Costs: 93,000 91,200 31,200 40,544 Fixed Overhead 60,600 62,600 Total Cost of Goods Sold 238,200 247,788 $ 276,800 $ 237,312 Gross Profit Print Done