reqierments 1 and 2.. *with explanation please*

P23-26A Preparing a flexible budget computing standard cost variances Morton Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Morton allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: Sales Static Budget Actual Results (1,000 recliners) (980 recliners) (1,000 recliners $505 each) $ 505,000 (980 recliners x $480 each) $ 470,400 Variable Manufacturing Costs: Direct Materials (6,000 yds. @ $8.60/yd.) 51,600 (6,143 yds @ $8.40/yd.) 51,601 Direct Labor (10,000 DLHr @ $9.20/DLHr) 92,000 (9,600 DLHr @ $9.30/DLHr) 89,280 Variable Overhead (6,000 yds @ $5.20/d.) 31,200 (6,143 yds @ $6.60/yd.) 40,544 Fixed Manufacturing Costs: Fixed Overhead 60,600 62,600 Total Cost of Goods Sold 235,400 244,025 Gross Profit $ 269,600 $ 226,375 Requirements 4. 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