Exercise 15-10A (Algo) Evaluating a cost center including flexible budgeting concepts LO 15-3, 15-4, 15-5 Thornton 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 Static Budget 26,000 kits $187,200 161,200 39,000 387,400 204,000 $591,400 Actual Results 28,400 kits $242,880 168,780 46,000 457,660 199,700 $657,360 Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Total manufacturing cost $591,400 $657,360 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 Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs $ 0 $ 0 Calculate the variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs