Gray Company refinishes antique furniture. Most customers bring in an item that they have inherited or purchased. Gray then completely repairs and refinishes each item with loving care. The firm prepares a budget at the beginning of each month. Number of units refinished is very difficult to predict. However, labor and materials have been found to vary closely with number of units completed. There is only 1 employee, who has worked for the firm for 20 years. Materials consist of chemicals to clean the furniture and wood finishes. Utilities and depreciation are fixed costs. A static budget analysis for the month of April follows: Variance Item Units Budget 450 Actual 530 80 F Revenue $405,000 $445,200 $40,200 F Labor Materials Utilities Depreciation 83,250 33,750 31,050 75,430 94,900 50,350 30,819 75,430 11.650 U 16.600 U 231 F 1. Prepare a flexible budget analysis for the firm for the month of April. 2. Explain the change, if any, in the variance for labor under the static budget compared to the flexible budget