Tailor Company uses a flexible budget for its indirect manufacturing costs. For 2025, the company anticipated that it would produce 27,000 units with 4,800 machine-hours and 8,000 employee days. The costs and cost drivers were to be as follows: Fixed Variable Cost driver Product handling PhP45,000 PhP0.75 per unit Inspection 12,000 12.00 per 100 unit batch Utilities 600 6.00 per 100 unit batch Maintenance 1,250 0.25 per machine-hour Supplies 5.00 per employee day During the year, the company processed 26,500 units, worked 8,200 employee days, and had 4,850 machine-hours. The actual costs for 2025 were: Actual costs Product handling PhP65,000 Inspection 16,200 Utilities 2,220 Maintenance 2,850 Supplies 39,900 Required: a. Prepare the static budget using the overhead items above and then compute the static-budget variances. b. Prepare the flexible budget using the overhead items above and then compute the flexible-budget variances