Rouse Recliners manufactures leather recliners and uses flexibie budgeting and a

Question

Rouse Recliners manufactures leather recliners and uses flexibie budgeting and a standard cost system Rouse alocaes overhead based on yards of direct materiais The company's performance repo ncludes the following selected data 1cick the mn to view te selected data ) Data Table Read the requirements Requirement 1. Prepare a fexible budget based on the acthual number of recliners sold Static Budget Actual Resuts Rouse Recliners (975 reclinens) (355 recliners Flexible Budget 975 neclines x$ 510 each) 955 recliners x$ 480 each) 497 250 Variable Manufacturing Costs per Unit Direct Material 50,310 Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs (5.850 yds. @ $ 8.60/yd (5,987 yds $ 840/yd) (9. 750 DLHr @ 9.40 / Dur) 9,350 DLHr $ 9.50/DLH) Direct Labor 91850 Direct Materials Direct Labor Veriable Overhead Variable Overhead 31,005 (5.987 yd. @ $íyd) 40,113 Fixnd Manufacturing Costs Fixed Manufacturing Costs: Total Coat of Goods Sold Choose from any list or enter any number in the input fields and then continue to Fised Overhead Total Cost of Goods Sold Gross Profe Filxed Overhead 233 220 241.484 64 030 S Print Done 6 MacBook Pro 5 6 8 command option

Explanation / Answer

Requirement1 Rouse Recliners Flexible budget Unit Total Actual units 955 Sales revenue $510 $487,050 variable manufacturing costs: 50310 Direct materials $    51.60 $             49,278 91650 Direct labor $    94.00 $             89,770 31005 Variable overhead $    31.80 $             30,369 Fixed manufacturing costs $             60,255 Total cost of goods sold $716,722 Requirement2 Direct material cost variance (Budgeted material cost)-(Actual Direct material cost)(SC-AC) -1013 Unfavourable Direct labour cost variance (Budgeted labor cost)-(Actual labor cost)(SC-AC) 945 Favourable 5730 Direct material efficiency variance Standard price*(SQ-AQ)=8.6*((5850/975)*955-5987) -2210.2 Unfavourable 9550 Direct labor efficiency variance Standard labor rate*(SQ-AQ)=$9.4*((9750/975)*955-9350) 1880 Favourable VOH Cost variance SC-AC=30369-40113 -9744 Unfavourable VOH Efficiency Variance Standard overhead rate*(Standard yds-Actual yds) -1362.1 Unfavourable Standard VOH rate=$5.3 /yd Standard yards=5730=(5850/975)*955 Actual yards=5987

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