Baird Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production departments static budget and actual results for Year 3 follow: Static Budget Actual Results Production in units 30,000 kits 31,200 kits Direct materials $ 222,000 $ 269,780 Direct labor 192,000 192,880 Variable manufacturing overhead 45,000 49,100 Total variable costs 459,000 511,760 Fixed manufacturing overhead 203,000 197,500 Total manufacturing cost $ 662,000 $ 709,260 Required a. Convert the static budget into a flexible budget. b. Calculate the variances.

Exercise 15-10A (Algo) Evaluating a cost center including flexible budgeting concepts LO 15-3, 15-4, 15-5 Baird Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department's static budget and actual results for Year 3 follow: Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget Actual Results 30,000 kits 31,200 kits $ 222,000 $269, 780 192,000 192,880 45,000 49, 100 459,000 511,760 203,000 197,500 $662,000 $709,260 Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Complete this question by entering your answers in the tabs below. Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Required A Required B Calculate the variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs