Question 3 6 Max Actual Manila Company manufactures ceramic vases. To complete a vase, Manila requires the following input: Direct material standard 18 pounds at 4.80 pound Direct labor standard 0.5 hours at $ 9.00 per hour Budgeted fixed cost per quarter $ 25,200 Budgeted selling price $ 272.70 During the year of 2019 the company budgeted to produce and se $ 1,680 vases Actual information for 2019 is provided below: Number of vases made and sold 1,596 Selling price $ 286.34 Direct materials used in production 27,579 pounds Direct labor used in production 758 hours Total cost of DM used $ 165,473 Total cost of direct labor $ 8,618 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