Business, 31.05.2020 01:01 helper4282

Rundle 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 Production in units 28,000 kits 29,200 kits Direct materials ($6.40 per unit) $ 179,200 $ 224,680 Direct labor ($5.40 per unit) 151,200 150,480 Variable manufacturing overhead ($1.50 per unit) 42,000 46,900 Total variable costs 372,400 422,060 Fixed manufacturing overhead 203,000 198,100 Total manufacturing cost $ 575,400 $ 620,160 Required a. Convert the static budget into a flexible budget. b. Calculate the volume variance for Direct materials, Direct labor and Fixed manufacturing overhead. c. Calculate the flexible budget variances for Direct materials, Direct labor and Fixed manufacturing overhead.

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