Help. Sy Requirements Static Budget Actual Results (975 recliners (955 recliners

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Sy Requirements Static Budget Actual Results (975 recliners (955 recliners) 1. 2. 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 Sales (975 recliners x S 500 each) (955 recliners x S 490 each) S 487,500 467,950 Variable Manufacturing Costs: Direct Materials 49,725 (5,850 yds.S 8.50 /yd.) (5,987 yds. S 8.30 /yd.) (9,750 DLHr S 9.20 / DLHr) (9,350 DLHrS 9.30 DLHr) (5,850 yds. S 5.30 Iyd.) (5,987 yds. 6.70 lyd.) 3. Have Preston's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? Describe how Preston's managers can benefit from the standard costing system. 49,692 4. Direct Labor 89,700 86,955 Variable Overhead 31,005 Print Done 40.113 Fixed Manufacturing Costs: Gross Profit Fixed Overhead 60,255 62255 Enter any number in the edit tields and then click Check Answer

Explanation / Answer

oer unit Actual units (Recliners) 955 Sales revenue 500 477500 Variable manufacturing costs Direct materials (5987*8.5) 8.5 50890 Direct labor (9350*9.2) 9.2 86020 variable overhead (5987*5.3) 5.3 31731 Fixed Manufacturing costs Fixed overhead 60,255 total cost of goods sold 228896 Gross profit 248604

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