Teecorp Company Uses a Flexible Budget for Its Indirect Manufacturing

Teecorp Company uses a flexible budget for its indirect manufacturing costs.For 2015,the company anticipated that it would produce 27,000 units with 4,800 machine-hours and 8,000 employee days.The costs and cost drivers were to be as follows:
$\begin{array}{lrrl}&\text { Fixed }&\text { Variable } & \text { Cost driver }\\\text { Product handling } & \$ 45,000 & \$ 0.75 & \text { per unit } \\\text { Inspection } & 12,000 & 12.00 & \text { per } 100 \text { unit batch } \\\text { Utilities } & 600 & 6.00 & \text { per } 100 \text { unit batch } \\\text { Maintenance } & 1,250 & 0.25 & \text { per machine-hour } \\\text { Supplies } & & 5.00 & \text { per employee day }\end{array}$ During the year,the company processed 26,500 units,worked 8,200 employee days,and had 4,850 machine-hours.The actual costs for 2015 were:
$\begin{array}{lr}&\text { Actual costs }\\\text { Product handling } & \$ 65,000 \\\text { Inspection } & 16,200 \\\text { Utilities } & 2,220 \\\text { Maintenance } & 2,850 \\\text { Supplies } & 39,900\end{array}$ Required:
a.Prepare the static budget using the overhead items above and then compute the static-budget variances.
b.Prepare the flexible budget using the overhead items above and then compute the flexible-budget variances.