Question

2 parts

Benson 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. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget Actual Results 33,000 kits 35,500 kits $ 214,500 $269,350 181,500 188,350 49,500 56,150 445,500 513,85e 214,000 288, 5ee $659.500 $722,350 Required a. Convert the static budget into a flexible budget 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 Budget 35 500 Ks Production in uns Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Required

Answer 1

A.

Flexible Budget
Production in Units	35,500 units
Direct materials	$ 230,750
Direct labor	195,250
Variable manufacturing overhead	53,250
Total Variable Costs	$ 479,250
Fixed manufacturing overhead	214,000
Total manufacturing costs	$ 693,250

B.

Variances
Direct materials	$ 38,600	U
Direct labor	6,900	F
Variable manufacturing overhead	2,900	U
Total variable costs	34,600	U
Fixed manufacturing overhead	5,500	F
Total manufacturing costs	$ 29,100	U