Koch Medical Equipment Company makes a blood pressure measuring kit. Albert Kaiser is the production manager. The production departments static budget and actual results for 2015 follow.

Koch Medical Equipment Company makes a blood pressure measuring kit. Albert Kaiser is the production manager. The production department's static budget and actual results for 2015 follow Static Budget Actual Results 28,000 kits Production in units Direct materials Direct labor Variable manufacturing overhead 30,600 kits $182,000 154,000 42,000 $236,700 161,500 49,000 Total variable costs Fixed manufacturing overhead 378,000 211,000 447,200 206,800 Total manufacturing cost $589,000 $654,000 Required a. Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs 30,600 Kits b. Calculate variances and indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs