Avery Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $37, $7, and $12, respectively. The president is pleased with the following performance report Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 333,000 $ 67,000 109,000 370,000 $ 37,000 F 70,000 3,000 F 120,000 11,000 F Actual output was 8,600 attach cases. Assume all three direct-cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Total direct costs Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes for changes in output levels. The existing performance report shows a amount budgeted. The president should analyze the total direct cost variance of $ The revised performance report reveals that this variance is due to the for each cost category to assist in identifying the causes. in output units from the