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. Static Budget Actual Results Production in units 40, 000 kits 41, 000 kits Direct materials $280, 000 $324, 900 Direct labor 240, 000 239, 200 Variable manufacturing overhead 60 , 000 63 , 300 Total variable costs 580 , 000 627, 400 Fixed manufacturing overhead 219 , 000 213, 200 Total manufacturing cost $799 , 000 $840, 600 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 41,000 Kits Direct materials Direct labor Variable manufacturing overhead Total variable costs O Fixed manufacturing overhead Total manufacturing costs O