Manila Company manufactures ceramic vases. To complete a vase, Manila requires the following input Direct material standard 7.5 pounds at 100 pound Direct labor standard 0.5 hours $ 9.60 per hour Budgeted fixed cost per quarter $ 39,000 . Budgeted selling price $ 36.90 During the year of 2019 the company budgeted to produce and se $ 2,600 vases. at Actual information for 2019 is provided below: Number of vases made and sold 2,470 Selling price $ 38.75 Direct materials used in production 17,784 pounds Direct labor used in production 1,173 hours Total cost of DM used $ 22,230 Total cost of direct labor 14,227 Fixed cost incurred $ 37,050 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 Compute direct material efficiency variance and direct material price variance, total direct material variance, and indicate whether each variance as favorable or unfavorable. Comment on findings