Fanning 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 25,000 kits $162,500 137,500 37.500 337,500 213,000 SS50, 500 Actual Results 27,900 kits $220, 250 147,350 43,850 411, 450 207,600 $619,050 Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget 27,900 Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs