Question

Preston Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Preston allocates overhead based on yards of direct materials. The company's performance report includes the following selected data: EEB (Click the icon to view the selected data.) Read the requirements. Requirement 1. Prepare a flexible budget based on the actual number of recliners sold. (Round budget amounts per unit to Data Table Preston Recliners Static Budgt Actual Results 75 recliners) (955 recliners) Flexible Budget Budget Amounts per Unit Sales (975 recliners x 500 each 475 each) S 487,500 (955 recliners x 453,625 Variable Manufacturing Costs: 955 Actual Units (Recliners) Sales Revenue Variable Manufacturing Costs: Direct Materials (5,850 yds. $8.70/yd.) (5,987 yds. 8.50 /yd.) 9,750 DLHr$ 9.20/DLHr) (9,350 DLHr 9.40 DLHr) (5,850 yds. 530/yd.) (5,987 yds.6.70 /yd.) 50,895 453625 477500 50,890 Direct Labor 89,700 Direct Materials Direct Labor Variable Overhead 50895 89700 31005 50839.5 87890 40112.9 87,890 ariable Overhead 31,005 40,113 Fixed Manufacturing Costs: Fixed Manufacturing Costs Fixed Overhead Total Cost of Goods Sold Gross Profit 62255 231929 255645 60,255 231,855 255,645 S 62,255 241,148 212,477 Fixed Overhead Total Cost of Goods Sold Gross Profi

Answer 1