Exercise 15-10A (Algo) Evaluating a cost center Including flexible budgeting concepts LO 15-3, 15-4, 15-5 Adams 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 Static Budget Actual Results: Production in units 23,000 kits 24,900 kits Direct materials i $138,000 $187,000 Direct labor 115,000 119,000 Variable manufacturing overhead 34,500 39,650 Total variable costs 287,500 345,650 Fixed manufacturing overhead 208,000 202,300 Total manufacturing cost $495,500 $547,950 Required: a. Convert the static budget into a flexible budget. b. Calculate the variances.