Flexible budget. The budgeted prices for direct materials, direct manufacturing labour, and Flexible-budeet variance direct marketing (distribution) labour per attaché case are $46, $10.40, and $14.20, respectively.

$23,470 U The president is pleased with the following performance report:

REQUIRED Actual output was 9,050 attaché cases. Is the president’s pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Assume all three directcost items are variable costs.LO1

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Static Actual costs Budget Variance Direct materials $436,800 $460,000 $23,200 F Direct manufacturing labour 93,600 104,000 10,400 F Direct marketing (distribution) labour 132,000 142,000 10,000 F