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. Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing cost Static Budget 27,000 kits $183,600 156,600 40,500 389.700 206,000 $586,700 Actual Results 29,400 kits $237,720 163,720 46,300 447,740 200,700 $648,440 Required a. Convert the static budget into a flexible budget. b. Calculate the variances Flexible Budget 29,400 Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs