Bennett Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $42, $6, and $11, respectively. The president is pleased with the following performance report: B (Click the icon to view the performance report.) 0 1,400 Actual output was 10,100 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. Actual Flexible-Budget Flexible Sales-Volume Static Results Variance Budget Variance Budget Output units 10,100 10,100 11,500 Direct materials $ 448,000 $ 23,800 U $ 424,200 $ 58,800 F $ 483,000 Direct manufacturing labor 66,000 5,400 U 60,600 8,400 F 69,000 Direct marketing labor 115,500 4,400 U 111,100 15,400 F 126,500 Total direct costs $ 629,500 $ $ 595,900 $ 82,600 $ 678,500 Is the president's pleasure justified? The existing performance report is a Level 1 analysis, based on a static budget. It makes no adjustment for changes in output levels. 33,600 V The existing performance report shows a favorable total direct cost variance of The flexible-budget variance shows each direct cost category to have a(n) unfavorable variance indicating less efficient use of each direct cost item than was budgeted, or the use of more costly direct cost items than was budgeted, or both. Choose from any list or enter any number in the input fields and then click Check Answer. i x Data Table teria nufa rketi Direct materials Direct manufacturing labor Direct marketing (distribution) labor Actual Costs Static Budget $ 448,000 $ 483,000 66,000 69,000 115,500 126,500 Variance $35,000 F 3,000 F 11,000 F ct co sider ng pl s in Print Done favorable total de nontuorin TbAsible bude