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

Rooney 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 21,000 kits 22,800 kits
Direct materials $ 136,500 $ 185,200
Direct labor 115,500 118,200
Variable manufacturing overhead 31,500 37,700
Total variable costs 283,500 341,100
Fixed manufacturing overhead 208,000 202,800
Total manufacturing cost $ 491,500 $ 543,900

Required

a. Convert the static budget into a flexible budget.

b. Calculate the variances.

Flexible Budget
Production in units 22,800 Kits
Direct materials
Direct labor
Variable manufacturing overhead
Total variable costs $0
Fixed manufacturing overhead
Total manufacturing costs $0

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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