Q.10

Muskrat 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		60,000	Kits			64,000	Kits
Direct materials	$	525,000			$	655,000
Direct labor		450,000				464,000
Variable manufacturing overhead		120,000				135,000
Total variable costs		1,095,000				1,254,000
Fixed manufacturing overhead		525,000				512,500
Total manufacturing cost	$	1,620,000			$	1,766,500

Required

1. Convert the static budget into a flexible budget.

2. Calculate the variances.

Can't figure out what the last 2 blanks are

Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Flexible Budget 64,000 Kits $ 560,000 480,000 128,000 $ 1,168,000 525,000 $ 1,693,000