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Solomon Medical Equipment Company makes a blood pressure measuring kit

Accounting

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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 2019 follow:

  Static Budget  Actual Results

Production in units 33,000 kits  34,100 kits

Direct materials  $211,200    $255,340  Direct labor   178,200     177,240  Variable manufacturing overhead   49,500     54,150  Total variable costs   438,900     486,730  Fixed manufacturing overhead   209,000     203,900

Total manufacturing cost  $647,900    $690,630 

a. Convert the static budget into a flexible budget.

b. Calculate the variances.