7) Flexible Budget Comparing Budget and Actual Results The following are the budget and actual results for factory labor. At the beginning of the month the labor budget was created under the assumption that 150 drums would be built during the month. The actual number of drums produced was 180 drums. As a result, the original budget needs to be modified in order to account for the increase in production. Once the budget is modified to reflect the increase in production, the modified budget can be compared to actual results and the variance calculated. [7a) Complete the following variance report (round to nearest dollar). American Drum Company Labor Supervisor Budget Variance Report For the Month of July, 2XXX Budget 150 Drums Budget 180 Drums Actual Cost 180 Drums Variance Over Budget Under Budget Direct Labor (variable cost) Drum assemblers Warehouse clerk Finish technicians Packing derk Total Direct Labor Indirect Labor (fixed cost) Janitor Labor Supervisor Total Indirect Labor Grand Total $ $ $ $ $ 8,250 | 3,562 4,568 3,562 19,942 $ $ $ $ $ 9,860 4,320 6,900 4,123 25,203 $ $ $ $ 2,200 5,500 7,700 27,642 $ $ $ 2,620 5,500 8,120 33,323 7b) What does this report reveal? Why might the finish technicians be so far over budget