Exercise 15-10A (Algo) Evaluating a cost center including flexible budgeting concepts LO 15-3, 15-4, 15-5 Franklin 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 38,000 kits $235,600 197,600 57,000 490,200 210,000 $700,200 Actual Results 39,300 kits $281,560 197,360 62,650 541,570 205,100 $ 746,670 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 Production in units 38,000| Kits Direct materials Direct labor Variable manufacturing overhead Total variable costs 0 Fixed manufacturing overhead Total manufacturing costs 0 Complete this question by entering your answers in the tabs below. 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