Campbell 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 Year 3 follow. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Statie ludget 30,000 kits $186,000 156,000 45,000 387,000 218.000 $605,000 Actual Results 31,900 kita $234,880 159,50 50.250 444,710 213,000 $657,710 Required a. Convert the static budget into a flexible budget. b. Calculate the variances. 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