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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

Fanning Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production departments static budget and actual results for Year 3 follow.
Static Budget Actual Results
Production in units 31,000 kits 33,800 kits
Direct materials $ 248,000 $ 309,100
Direct labor 217,000231,000
Variable manufacturing overhead 46,50053,400
Total variable costs 511,500593,500
Fixed manufacturing overhead 205,000200,400
Total manufacturing cost $ 716,500 $ 793,900
Required
a. Convert the static budget into a flexible budget.
b. Calculate the variances

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