Thornton 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 28,000 kits $187,600 159,600 42,000 389, 200 220,000 $609, 200 Actual Results 30,400 kits $242,280 166, 380 47,600 456,260 215,500 $671,760 Required a. Convert the static budget into a flexible budget. b. Calculate the variances. 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.) Flexible Budget Production in units Kits 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