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Static Budget (1,000 recliners) $ 505,000 Actual Results (980 recliners) 470,400 Sales (1,000 recliners x...

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Accounting

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Static Budget (1,000 recliners) $ 505,000 Actual Results (980 recliners) 470,400 Sales (1,000 recliners x $ 505 each) (980 recliners x $ 480 each) Variable Manufacturing Costs: Direct Materials (6,000 yds. @ $ 8.60 / yd.) (6,143 yds. @ $ 8.40 / yd.) Direct Labor (10,000 DLHr @ $ 9.20 / DLHr) 51,600 51,601 92,000 Direct Labor 92,000 89,280 (10,000 DLHr @ $ 9.20 / DLHr) (9,600 DLHr @ $ 9.30 / DLHr) (6,000 yds. @ $ 5.20 / yd.) (6,143 yds. @ $ 6.60 / yd.) Variable Overhead 31,200 40,544 Fixed Manufacturing Costs: Fixed Overhead 60,600 62,600 Total Cost of Goods Sold 244,025 235,400 269,600 $ 226,375 Gross Profit 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. Formula Variance In Direct materials cost variance = Direct labor cost variance 11

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