Sales (1,000 recliners x $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 @ $10.20 / DLHr) 102,000 (9,600 DLHr @ $10.30 / DLHr) 98,880 Variable Overhead (6,000 yds. @ $5.20 / yd.) 31,200 (6,143 yds. @ $6.60 / yd.) 40,544 Fixed Manufacturing Costs: Fixed Overhead 60,600 62,600 Total Cost of Goods Sold 245,400 253,625 Gross Profit $259,600 $216,775

Answer rating: 100% (QA)

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