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Adams Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production departments static budget and actual results for

Adams Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production departments static budget and actual results for 2019 follow:

Static Budget Actual Results
Production in units 23,000 kits 25,100 kits
Direct materials $ 177,100 $ 231,170
Direct labor 154,100 161,870
Variable manufacturing overhead 34,500 39,550
Total variable costs 365,700 432,590
Fixed manufacturing overhead 211,000 206,200
Total manufacturing cost $ 576,700 $ 638,790

Required

a. Convert the static budget into a flexible budget.

b. Calculate the variances.

Required A

Required B

Convert the static budget into a flexible budget. (Do not round intermediate calculations.)

Flexible Budget
Production in units 25,100 Kits
Direct materials
Direct labor
Variable manufacturing overhead
Total variable costs $0
Fixed manufacturing overhead
Total manufacturing costs $0

Required B

Calculate the variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Variances
Direct materials
Direct labor
Variable manufacturing overhead
Total variable costs
Fixed manufacturing overhead
Total manufacturing costs

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