er 23 objectives 1, 3, 4 P23-31B Preparing a flexible budget and computing standard cost variances and a Root Recliners manufactures leather recliners and uses flexible budgeting standard cost system. Root allocates overhead based on yards of direct mater The company's performance report includes the following selected data: Actual Results (980 recliners) Static Budget (1,000 recliners) $ 505,000 (1,000 recliners x $505 each) (980 recliners $490 each) Sales $ 480,200 Variable Manufacturing Costs Direct Materials (6,000 yds. $8.70 yard) 52,200 52,216 (6,143 yds. @ $8.50/yard) (10,000 DLHr@ $9.00/DLHr) Direct Labor 90,000 (9,600 DLHr@ $9.10/DLHr) 87,360 Variable Overhead (6,000 yds. @ $5.00yard) 30,000 (6,143 yds. $6.40/yard) 39,315 Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold Gross Profit 60,000 232,200 5 272,800 62,000 240,891 $ 239,309 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 Root's managers done a good job or a poor job controlling materials, labor, 4. Describe how Root's managers can benefit from the standard cost system. Smart Sets manufactures headphone cases. During September 2016, the company and overhead costs? Why? s3, 4,5 P23-32B Computing standard cost variances and reporting to management rt $300 Fproduced 108,000 cases and recorded the following cost data Standard Cost Information Quantity