Exercise 15-10A (Algo) Evaluating a cost center including flexible budgeting concepts LO 15-3, 15-4, 15-5 Zachary 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 lobor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cont Static Budget 20,000 hits $179,200 151,200 42.000 372,400 216,000 5555,400 Actual Results 29,300 HES $225,220 151,630 46.650 423,400 211, 900 $635,390 Required 6. 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 23,500 Kits Direct materials $ 169,2003 Direct labor 1457003 Variable manufacturing overhead 35,250 X Total variable costs $ 350,150 Fixed manufacturing overhead 215,000 Total manufacturing costs $ 565,150 Required B > Complete this question by entering your answers in the tabs below. 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 37.100 U Direct labor 7.100 F Variable manufacturing 1.800 X U overhead Total variable costs Fixed manufacturing overhead F Total manufacturing costs U U