Manila Company manufactures ceramic vases. To complete a vase, Manila requires the following input: Direct material standard 10 pounds at $ 3.60 pound Direct labor standard 0.5 hours at $ 9.90 per hour Budgeted fixed cost per quarter is 25,200 . Budgeted selling price $ 122.85 During the year of 2019 the company budgeted to produce and sell 1,680 vases. $ Actual information for 2019 is provided below: Number of vases made and sold 1,596 Selling price $ 128.99 Direct materials used in production 15,322 pounds Direct labor used in production 758 hours Total cost of DM used $ 68,947 Total cost of direct labor $ 9,480 Fixed cost incurred $ 23,940 Requirements Assuming that direct labor and direct materials are the only variable costs in the company: 1 Prepare a static budget for 2019. 2 Prepare a flexible budget for 2019. 3 Prepare static budget variance analysis: compute static budget, sales volume and flexible budget variances. Indicate favorable or unfavorable. Comment on findings