Jordan Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager....

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Jordan 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 Year 3 follow. Static Budget 26, 000 kits $163,800 Actual Results Production in units Direct materials Direct labor 27, 200 kits $208,460 136,760 43,500 137,800 Variable manufacturing overhead Total variable costs 39,000 340,600 203,000 388,720 197,500 Fixed manufacturing overhead Total manufacturing cost $543,600 $586,220 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 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 < Required A Required B > Jordan 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 Year 3 follow. Static Budget 26, 000 kits $163,800 Actual Results Production in units Direct materials Direct labor 27, 200 kits $208,460 136,760 43,500 137,800 Variable manufacturing overhead Total variable costs 39,000 340,600 203,000 388,720 197,500 Fixed manufacturing overhead Total manufacturing cost $543,600 $586,220 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 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 < Required A Required B >

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Flexible Budget is prepared based on the actual Units Fixed Expenses remains constant and does not c... View the full answer