Koch Medical Equipment Company makes a blood pressure measuring kit. Albert Kaiser is the production manager. The production department’s static budget and actual results for 2015 follow.Static BudgetActual Results Production in units21,000 kits23,600 kits Direct materials$149,100$204,960 Direct labor128,100136,660 Variable manufacturing overhead31,50038,700 Total variable costs308,700380,320 Fixed manufacturing overhead207,000201,600 Total manufacturing cost$515,700$581,920Requireda.Convert the static budget into a flexible budget.