7-25 Flexibility in Budgets Refer to Problem 7-24. Suppose that the original budget was for 24,000 units of output. The general manager is gleeful about the following report: Direct materials ACTUAL COSTS $151,700 ORIGINAL Direct labor $ 88,200 BUDGET $192,000 $120,000 VARIANCE $52,000 F $31,800 F Is the manager's glee warranted? Prepare a report that might provide a more detailed explanation of why the original budget was not achieved. Good out- put was 20,000 units.