According to its original plan, Topeka Consulting Services Company plans to charge its customers for service at $120 per hour in 2018 The company president expects consulting services provided to customers to reach 45,000 hours at that rate. The marketing manager, however, argues that actual results may range from 40,000 hours to 50,000 hours because of market uncertainty Topeka's standard variable cost is $45 per hour and its standard foed cost is $1,350,000 Required Develop flexible budgets based on the assumptions of service levels at 40,000 hours, 45,000 hours and 50,000 hours. Flexible Budget Flexible Budget Flexible Budget 40.000 Hours 45,000 Hours 50,000 Hours 14N> Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget 60,000 kits $ 525,000 450,000 120,000 1,095,00 525,000 $1,620,000 Actual Results 64,000 tits $ 655,000 464,089 135,000 1,254,000 512,500 $1,766,500 Required a. Convert the static budget into a flexible budget b. Calculate the variances Complete this question by entering your answers in the tabs below. Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget 64,000 kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Faced manufacturing overhead Totalment e Required a. Convert the static budget into a flexible budget b. Calculate the variances. Complete this question by entering your answers in the tabs below. ces Required A Required B Calculate the variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs