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. Static Budget Actual Results Production in units 60,000 Kits 64,000 Kits Direct materials $ 525,000 $ 655,000 Direct labor 450,000 464,000 Variable manufacturing overhead 120,000 135,000 Total variable costs 1,095,000 1,254,000 Fixed manufacturing overhead 525,000 512,500 Total manufacturing cost $1,620,000 $1,766,500 Required 3. Convert the static budget into a flexible budget. b. Calculate the variances. 6 Answer Is not complete. Complete this question by entering your answers In the tabs below. Required A Required B Convert the static budget into a flexible budget. (Do not round intermediate calculations.) Production in units 64,000 Kits Direct materials $ 655,000 8 Direct labor 464,000 0 Variable manufacturing overhead 135,000 a Total variable costs $ 1,254,000 Fixed manufacturing overhead 525,000 0 Total manufacturing costs $ 1,779,000 Required B >