(12marks) Critical thinking skills Q4 (12Marks: c1:12) Cruze Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury wallet are $50, $14, and $20, respectively. The president is pleased with the following performance report Actual Costs Static Budget Variance Direct materials $398,500 $435,000 $36,500 F 73,600 75,000 1,400 F Direct manufacturing labor Direct marketing (distribution) labor 128,500 135,000 6,500 F Required: 1.Actual output was 7.700 luxury wallets. Assume all three direct-cost items shown are variable costs (7M) 2 is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget (5M)