Green River Inc. established the following standards for its principal product, a kit to Convert ordinary lawn mowers into mulching mowers: Direct Materials: Blades 2 blades @ $13 per blade Adaptors 1 adaptor @ $6 per adaptor Direct Labor: Grinding 1/2 hour @ $ 14 per hour Finishing & Testing 2/3 hour @ $12 per hour Overhead Variable $8 per machine hour Facility (Fixed) 7.000 square feet @ $2 per square foot The standard variable overhead cost per conversion kit is $2. Traditionally, all overhead is applied on the basis of machine hours. Planned production and sales for the year was 5,000 conversion kits. The planned selling price per kit is $50. Actual Results Kits produced & sold -5,200 (this is within the relevant range) Actual selling price per kit Materials: $48 Blades Purchased & Used 11,000 blades @ $12.75 per blade Adaptors Purchased & Used 5,300 w S6.10 per adaptor Labor. Grinding 2,800 hours, total cost $42,000 Labor, Finishing & Testing 3,700 hours, total cost $45325 Machine hours used 1,325 machine hours Variable Overhead $11,455 Facility Level Overhead $14,500 (7.000 square feet) Prepare the flexible manufacturing cost budge, for the year's actual output. Calculate the material variances. Calculate the labor variances