Exercise $15-10$A $($Algo$)$ Evaluating a cost center including flexible budgeting concepts LO $15-3,15-4,15-5$

Solomon 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 Actual Results

Production in units $30,000$ kits $31,600$ kits

Direct materials $ $213,000$ $ $261,960$

Direct labor $183,000187,160$

Variable manufacturing overhead $45,00050,500$

Total variable costs $441,000499,620$

Fixed manufacturing overhead $217,000212,800$

Total manufacturing cost $ $658,000$ $ $712,420$

Required

a$.$ Convert the static budget into a flexible budget.

b$.$ Calculate the variances.