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Exercise 9-5A (Algo) Evaluating a cost center including flexible budgeting concepts LO 9-1 Gibson 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 37, eee kits $255, 300 218. 303 55,500 529,109 289, 898 $738,100 Actual Results 39,500 kits $311,550 225.958 61. 258 598.250 283, 108 $801,850 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 39.500 Kits Production in units Direct materials Direct labor Variable manufacturing overhead Total variable costs Fixed manufacturing overhead Total manufacturing costs (Required Required B > Exercise 9-5A (Algo) Evaluating a cost center Including flexible budgeting concepts LO 9-1 Gibson 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 37. eee kits $255,300 218. 309 55,500 529, 10e 209,000 $738,109 Actual Results 39, see kits $311.558 225,95 61,250 598.250 203, 100 $801,850 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 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