Rouse Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Rouse allocates overhead based on yards of direct materials. The company's performance report includes the ollowing selected data: Click the lcon to view the selected data.) Data Table Read the reirements Requirement 1, Prepare a fexible budget based on the actual number of recliners sold Static Budget Actual Results (1,000 recliners)(60 recliners) Rouse Recliners Flexible Budget Sales 1,000 recliners x $ 510 each) (980 recliners x $ 495 each) 510,000 Budget Amounts per Unit 485,100 Variable Manufacturing Costs Direct Materials (6,000 yds$ 8.80 /yd) 6,143 yds$ 8.60 /yd.) (10,000 DLHr$ 9.20/DLH (9,600 DLHr$ 9.30/DLH 6,000 yds$5.00 /yd 6.143 yds$ 6.40/yd 2.800 Actual Units (Reciners Sdes Revenue Variable Manufacturing Costs: 52.830 Direct Labor 92.000 89,280 Direct Materials Direct Labor Variable Overhead Variable Overhead 0.000 39.315 Fixed Manufacturing Costs: Fixed Manufacturing Costs: 60,000 Fixed Overhead Totl Cost of Goods Sold Gross Prost 62.000 243,425 241,675 Fixed Overhead 276.200 $ Choose from any list or enter any number in the input fields and then continue to Fored Overhead Total Cost of Goods Sold Gross Proft 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, fxed overhead cost, and xed 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 identity whether each variance is favorable (F or untavorable (U) (Round your answers to the nearest whole dollar Abbreviations used: AC actual cost; 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 identity whether each variance is favorable (F) or unlavorable (U), (Round your answers to the nearest whole dollar. Abbreviations used: AC- actual cost; AQ-actual quanity: FOH-fixed overhead: SC-standard cost, SQ- standard quantity Formula Variance Direet 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 etficiency variances, and identifly 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 fxed overhead; SC-standard cost; SO -standard quantity: VOH variable Formula Variance VOH cost variance 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 identfy whether each variance is favorable (F) or unfavorable (U). (Round your answers to the nearest whole dolar. Abbreviations used: AC actual oost; AQ actual quantity FOH fxed overhead, SC -standard cost; SQ -standard quantity Formula ariance FOH cost variance FOH volume variance Requirement 3. Have Rouse'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 variance help offset the overhead variances are direct materials cost variance and direct labor job contrelling overhead costs as evidenced by he act thatofthe job controling materials and labor oosts. The effliclency dreet labor cost variance and direct materials efficieney variance. Managers have done a Requirement 4. Describe how Rouse's managers can benefit from the standard costing system. Standard costing helps managers do the following