Chacha Inc is a manufacturing firm and has provided following data related to costs: Details..... .Fixed Cost/Month ($).... Wages and Salaries. 22900... Parts and Supplies..... Equipment Depreciation.... 1500.. Lorry Operating Expenses. 6200. Rent... 3400 Administrative Expenses... 4500. .Cost/unit of production ($) 16 7 0.5 1.5 X 0.6 Chacha computes the total costs as "fixed cost/month plus variable cost". The company expected to produce 2600 units in May, but actually produced 2900 units. The product's selling price is $46 per unit. Instructions: a) Prepare static budget at the company's expected level of production (2.5 Marks) b) Prepare a flexible budget at the company's actual level of production (2.5 Marks) c) Indicate the variances wheather favoarable or unfavorable (2 Marks)