Jordan 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 35,000 kits $224,000 189,000 52,500 465,500 215,000 $680,500 Actual Results 36,100 kits $269,840 189,440 57,750 517,030 209,700 $726,730 Required a. Convert the static budget into b. Calculate the variances. flexible budget. Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget 36,100 Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs 0 Fixed manufacturing overhead Total manufacturing costs $ 0 Required A Required B Calculate the variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs