Thornton Medical Equipment Company makes a blood pressure measuring kit. John Reisch 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 Static Budget 37,000 kits $ 259,000 222,000 55,500 536,500 Actual Results 38,200 kits $ 304,500 222,800 60,900 588,200 209,200 214,000 $ 750,500 $ 797,400 Total manufacturing cost Required a. Convert the static budget into a flexible budget. b. Calculate the variances. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Convert the static budget into a flexible budget. Complete this question by entering your answers in the tabs below. Required A Required B Convert the static budget into a flexible budget. Note: Do not round intermediate calculations. Flexible Budget Production in units 38,200 Kits Direct materials $ 259,000 Direct labor 222,000 Variable manufacturing overhead 55,500 Total variable costs 536,500 Fixed manufacturing overhead 214,000 Total manufacturing costs $ 750,500 Required A Required B 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). Variances Direct materials $ 45,500 F Direct labor 800 U Variable manufacturing overhead 5,400 F Total variable costs 51,700 F Fixed manufacturing overhead 4,800 U Total manufacturing costs $ 46,900 F < Required A Required B