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(Solution Download) Koch Medical Equipment Company makes a blood pressure measuring kit. Albert Kaiser is the production


 

 

 

 

 

 

 

 

 

 

Koch Medical Equipment Company makes a blood pressure measuring

 

kit. Albert Kaiser is the production manager. The production

 

departmentAc??cs static budget and actual results for 2015 follow.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Static Budget

 

Actual Results

  Production in

 

units

21,000kits23,900kits
  Direct

 

materials

$165,900$226,010
  Direct labor144,900158,010
  Variable

 

manufacturing overhead

31,50039,650
  Total variable

 

costs

342,300423,670
  Fixed manufacturing

 

overhead

208,000204,000
  Total manufacturing

 

cost

$550,300$627,670

 

 

 

 

 

 

 

Required

 

 

 

 

 

 

 

 

 

 

 

 

a.

 

Convert the static budget into a flexible budget. (Do

 

not round intermediate calculations.)

 

 

 

 

 

 

 

 

 

 

 

 

 

b.

 

Calculate variances and indicate the effect of each variance by

 

selecting favorable (F) or unfavorable (U). (Select "None"

 

if there is no effect (i.e., zero variance).)

 

 

 

      

 


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