Gibson 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: Actual Results 34,708 kits $308,060 230,460 Static Budget Production in units 33,000 kits Direct materials $257,400 Direct labor 224,400 Variable manufacturing overhead 49,500 53,850 Total variable costs 531,300 592,370 Fixed manufacturing overhead 208,000 202,200 Total manufacturing cost $739,300 $794,570 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.) Production in units Direct materials Direct labor Flexible Budget Kits Variable manufacturing overhead