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 41,5, and 11, respectively. The president is pleased with the following performance report: Actual output was 9,000 luxury wallets. Assume all three direct-cost items shown are variable costs. Is the president's optimism justified? Prepare a revised performance report that uses a flexible budget and a static budget. 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 41,5, and 11, respectively. The president is pleased with the following performance report: Actual output was 9,000 luxury wallets. Assume all three direct-cost items shown are variable costs. Is the president's optimism justified? Prepare a revised performance report that uses a flexible budget and a static budget