Question

Walton 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 2019 follow Static Budget Actual Results 35,600 kits 37,080 kEts Production in units Direct materials Direct lebor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost 15 points $259,800 224,000 52,509 $311,800 231,300 601,900 199 500 $801,400 $740,50 Print Required .Convert the static budget into a flexible budget References 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 B Production in unts Direct materials Direct labor Variable manufacturing overhead Total variable costs Foxed manufacturing overhead Total manulacturing costs 37000 Kits Required B 》

Answer 1

Particulars	Actual	Spending variance		Flexible budget	Activity variance		Static budget
Production in units	35600			37000			35000
Variable overhead cost
Direct material	311800	38000	U	273800	14800	U	259000
Direct labor	231300	5500	F	236800	12800	U	224000
Variable manufacturing overheads	58800	3300	U	55500	3000	U	52500
Total variable overheads	601900	35800	U	566100	30600	U	535500
Fixed manufacturing overehads	199500	5500	U	205000	0		205000
Total overhead cost	801400	30300	U	771100	30600	U	740500