Muskrat 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. Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Convert the static budget into a flexible budget: Note: Do not round intermediate calculations: Calculate the variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance)