White Recliners manufactures leather recliners and uses flexible budgeting and a standard c0st system. White 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 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 Me 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 identity 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 owerhead; 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 diroct 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.) lin land oort (Me Formula Variance Direct malerials efficiency variance Direct labor elficiency variance 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 White'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 Me materials cost variance and direct labor efficlency variance help offset the direct labor cost variance and direct materials efficiency variance. Managers job controling overhead costs as evidenced by the fact that have done a of the overhead variances ae Read the requirements. FOH cost variance FOH volume variance Requirement 3. Have White's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 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 job controlling overhead costs as evidenced by the fact that have done a of the overhead variances are Requirement 4. Describe how White's managers can benefit from the standard costing system. Standard costing helps managers do the following: and rt (Me Data Table Static Budget Actual Results (975 recliners) (955 recliners) Sales (975 recliners x $515 each) 502,125 (955 recliners x $ 475 each) $ 453,625 Variable Manufacturing Costs: Direct Materials (5,850 yds.@ $ 8.50/ yd.) 49,725 (5,987 yds.@ $ 8.30/yd.) 49,692 Direct Labor (9,750 DLHr @ $ 9.30/ DLHr) 90,675 (9,350 DLHr @ $ 9.40/ DLHr) 87,890 Variabl Overhead (5,850 yds.@ $ 5.30/yd.) 31,005 (5,987 yds.@ $ 6.70/yd.) 40,113 Fixed Manufacturing Costs: Fixed Overhead 60,255 62,255 Total Cost of Goods Sold 231,660 239,950 Gross Profit 270,465 $ 213,675 Print Done X i Requirements na 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. 1. r c iren 2. ial ct lab ontro Have White's managers done a good job or a poor job controlling materials, 3. White labor, and overhead costs? Why? Describe how White's managers can benefit from the standard costing system. ers do 4. Done Print White Recliners manufactures leather recliners and uses flexible budgeting and a standard c0st system. White 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 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 Me 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 identity 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 owerhead; 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 diroct 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.) lin land oort (Me Formula Variance Direct malerials efficiency variance Direct labor elficiency variance 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 White'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 Me materials cost variance and direct labor efficlency variance help offset the direct labor cost variance and direct materials efficiency variance. Managers job controling overhead costs as evidenced by the fact that have done a of the overhead variances ae Read the requirements. FOH cost variance FOH volume variance Requirement 3. Have White's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? 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 job controlling overhead costs as evidenced by the fact that have done a of the overhead variances are Requirement 4. Describe how White's managers can benefit from the standard costing system. Standard costing helps managers do the following: and rt (Me Data Table Static Budget Actual Results (975 recliners) (955 recliners) Sales (975 recliners x $515 each) 502,125 (955 recliners x $ 475 each) $ 453,625 Variable Manufacturing Costs: Direct Materials (5,850 yds.@ $ 8.50/ yd.) 49,725 (5,987 yds.@ $ 8.30/yd.) 49,692 Direct Labor (9,750 DLHr @ $ 9.30/ DLHr) 90,675 (9,350 DLHr @ $ 9.40/ DLHr) 87,890 Variabl Overhead (5,850 yds.@ $ 5.30/yd.) 31,005 (5,987 yds.@ $ 6.70/yd.) 40,113 Fixed Manufacturing Costs: Fixed Overhead 60,255 62,255 Total Cost of Goods Sold 231,660 239,950 Gross Profit 270,465 $ 213,675 Print Done X i Requirements na 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. 1. r c iren 2. ial ct lab ontro Have White's managers done a good job or a poor job controlling materials, 3. White labor, and overhead costs? Why? Describe how White's managers can benefit from the standard costing system. ers do 4. Done Print