7-22 Flexible budget. Bryant Companys budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $43, $6, and $13, respectively. The president is pleased with the following performance report:

7.5-25 Full Alternative Text

• The actual output was 10,000 attach cases. Assume all three direct-cost items shown are variable costs.

• Is the presidents pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget.