Data Table Static Budget Actual Results (1,000 recliners) (980 recliners) 515,000 $ 465,500 53,400 53,444 105,000 Sales (1.000 recliners x $515 each) (980 recliners x $475 each) Variable Manufacturing Costs: Direct Materials (6,000 yds @ $8.90 / yd.) (6,143 yds @ $8.70 / yd.) Direct Labor (10,000 DLHr @ $10.50 / DLHr) (9,600 DLHr @ $10.60 / DLHr) Variable Overhead (6,000 yds @ $5.20 / yd.) (6.143 yds. @ 56.60 / yd.) Fixed Manufacturing Costs: Fixed Overhead Total Cost of Goods Sold 101,760 31,200 40,544 60,600 62,600 258,348 250,200 264,800 $ $ Gross Profit 207,152 Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to the nearest cent.) Juda Recliners Flexible Budget Budget Amounts per Unit 980 515 Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials Direct Labor Variable Overhead Fixed Manufacturing Costs: Fixed Overhead 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 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 11 11 11 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.) 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 Juda'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 materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance. Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are