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 budgefis modified to reflect the increase in production, the modified budget can be compared to actual results and the variance calculated. 17a) Complete the following variance report (round to nearest dollar). American Drum Company Labor Supervisor Budget Variance Report For the Month of July, 2XXX Budget | Budget | Actual Cost Variance 150 Drums 180 Drums 180 Drums Over Budget Under Budget Direct Labor (variable cost) Drum assemblers Warehouse clerk Finish technicians Packing clerk Total Direct Labor Indirect Labor (fixed cost) Janitor Labor Supervisor Total Indirect Labor Grand Total uluun 8,250 3,5621 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 33,323 322 |7b) What does this report reveal? Why might the finish technicians be so far over budget