  Given the pair of a dualizing $k$-variety and its functorially finite
subcategory, we show that there exists a recollement consisting of their
functor categories of finitely presented objects. We provide several
applications for Auslander's formulas: The first one realizes a module category
as a Serre quotient of a suitable functor category. The second one shows a
close connection between Auslander-Bridger sequences and recollements. The
third one gives a new proof of the higher defect formula which includes the
higher Auslander-Reiten duality as a special case.
