7:22 Flexible budget. L'Accessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury belt - 41, 65, and 11, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials 373,500 410,000 36.500 F Direct manufacturing labor 48,600 50,000 1.400 F 110,000 103,500 Direct marketing (distribution) labor 6,500 F Actual output was 9,000 luxury wallets. Assune all three direct-cost items shown are variable costs