Koch Medical Equipment Company makes a blood pressure measuring kit. Albert Kaiser is the production manager. The production departments static budget and actual results for 2015 follow.

	Static Budget			Actual Results
Production in units		28,000	kits		30,800	kits
Direct materials	$	215,600		$	276,060
Direct labor		187,600			199,060
Variable manufacturing overhead		42,000			49,700
Total variable costs		445,200			524,820
Fixed manufacturing overhead		219,000			214,200
Total manufacturing cost	$	664,200		$	739,020

Required a. Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Flexible Budget Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs 30,800 Kits b. Calculate variances and indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Variances Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs