McKnight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost sy

McKnight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. McKnight allocates overhead based on yards of direct materials. The company's performance report includes the followin selected data: (Click the icon to view the selected data.) Read the requirements i Data Table – X Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. McKnight Recliners Flexible Budget Budget Amounts Static Budget (975 recliners) 487,500 Actual Results (955 recliners) Sales $ (975 recliners x $ 500 each) (955 recliners x $ 490 each) 467,950 per Unit Actual Units (Recliners) Variable Manufacturing Costs: Direct Materials 49,725 49,692 Sales Revenue Variable Manufacturing Costs: Direct Labor 88,725 Direct Materials (5,850 yds. @ $ 8.50 / yd.) (5,987 yds. @ $ 8.30 / yd.) (9,750 DLHr @ $ 9.10 / DLHr) (9,350 DLHr@ $ 9.30 / DLH) (5,850 yds. @ $ 5.30 / yd.) (5,987 yds. @ $ 6.70 / yd.) 86,955 Direct Labor Variable Overhead 31,005 40,113 Variable Overhead Fixed Manufacturing Costs: Fixed Manufacturing Costs: Fixed Overhead Fixed Overhead 60,255 62,255 Total Cost of Goods Sold 229,710 239,015 Choose from any list or enter any number in the input fields and then continue to the TA 257,790 $ 228,935 Gross Profit McKnight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. McKnight allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements. Requirement 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. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance Direct labor cost variance Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials efficiency variance = Direct labor efficiency variance Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity; VOH = variable overhead.) Formula Variance VOH cost variance VOH efficiency variance Mcknight Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Mcknight allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: (Click the icon to view the selected data.) Read the requirements. VOH efficiency variance = Now compute the fixed overhead cost and volume variances. Select the required formulas, compute the fixed overhead cost and volume variances, and identify whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dollar. Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance FOH cost variance = FOH volume variance Requirement 3. Have McKnight's managers done a good job or a poor job controlling materials, labor, and overhead costs? Why? The variances computed in Requirement 2 suggest that the managers have done a job controlling materials and labor costs. The direct materials cost variance and direct labor efficiency variance help offset the direct labor cost variance and direct materials efficiency variance. Managers have done a job controlling overhead costs as evidenced by the fact that of the overhead variances are Requirement 4. Describe how McKnight's managers can benefit from the standard costing system. Standard costing helps managers do the following: Choose from any list or enter any number in the innut fields and then continue to the next question,

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