Answer and Explanation:
The preparation of static budget is shown below:-
                        Static budget for the second quarter 
                                         Croix Company 
                                     Sales budget report
                              for the quarter ending March 31, 2020
Product line               Budget       Actual         Difference  
Newest guitar        $383,200     $399,500     $16,300 Favorable
                              Static budget for the year to date
                                         Croix Company 
                                     Sales budget report
                              for the quarter ending March 31, 2020
Product line      Budget          Actual          Difference
Newest guitar  $696,400      $703,500      $7,100 Unfavorable
Working note
Total budget sales = Sales of first quarter + Sales of second quarter
= $313,200 + $383,200
= $696,400
Total actual sales = Sales of first quarter + Sales of second quarter
=  $304,000 + $399,500
= $703,500