Actual Units (Recliners) 980 Sales Revenue $505.00 $494,900 Variable Manufacturing Costs: Direct Materials 51.60 50,568 Direct Labor 92.00 90,160 Variable Overhead 31.20 30,576 Fixed Manufacturing Costs: Fixed Overhead 60,600 Total Cost of Goods Sold 231,904 Gross Profit $262,996 Preparing a flexible budget computing standard cost variancesMorton Recliners manufactures leather recliners and uses flexible budgeting and a standard cost system. Morton allocates overhead based on yards of direct materials. The company’s performance report includes the following selected data:RequirementsPrepare a flexible budget based on the actual number of recliners sold. 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. Have Morton’s managers done a good job or a poor job controlling materials, labor, and overhead costs? Why?Describe how Morton’s managers can benefit from the standard cost system.