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Solomon Medical Equipment Company makes a blood pressure measuring kit. John Reisch is the production manager. The production department's static budget and actual results for Year 3 follow. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs. $ 185,000 160,000 37,500 Required a. Convert the static budget into a flexible budget b. Calculate the variances. $ 382,500 207,000 $ 589,500 Required A Required B Convert the static budget into a flexible budget. Note: Do not round intermediate calculations. 25,000 kits Complete this question by entering your answers in the tabs below. Flexible Budget 26,100 Kits 0 0 Actual Results. 26,100 kits < Required A $ 231,940 160,140 41,250 433,330 202,300 $ 635,630 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Calculate the variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (i.e., zero variance). Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Variances < Required A REFERECES Solomon Medical Equipment Company makes a blood pressure measuring kit. John Reisch is the production manager. The production department's static budget and actual results for Year 3 follow. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs. $ 185,000 160,000 37,500 Required a. Convert the static budget into a flexible budget b. Calculate the variances. $ 382,500 207,000 $ 589,500 Required A Required B Convert the static budget into a flexible budget. Note: Do not round intermediate calculations. 25,000 kits Complete this question by entering your answers in the tabs below. Flexible Budget 26,100 Kits 0 0 Actual Results. 26,100 kits < Required A $ 231,940 160,140 41,250 433,330 202,300 $ 635,630 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Calculate the variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (i.e., zero variance). Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Variances < Required A REFERECES
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Required A Convert the static budget into a flexible budget Flexible Budget for 26100 Kits Productio... View the full answer
Related Book For
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
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