Bikes "R" Us provided the following information needed for the preparation of its static and flexible budget reports during January, 2022:

Direct labor rate per direct labor hour	$ 35.00
Actual direct labor cost, January	$ 542,000
Expected direct labor hours per month	15,000
Actual direct labor hours, January	15,500

Instructions:

Prepare the following budget reports for January 2022 and evaluate the usefulness of each report.

(a) A static budget report (16 points)

NOTE: In order to receive full credit, you must use Excel formulas in each cell.

For the 'Favorable/Unfavorable' cell, you must use Excel's 'IF' function to have Excel determine

if the result is 'Favorable' or 'Unfavorable'.

(b) A flexible budget report (16 points)

NOTE: In order to receive full credit, you must use Excel formulas in each cell.

For the 'Favorable/Unfavorable' cell, you must use Excel's 'IF' function to have Excel determine

if the result is 'Favorable' or 'Unfavorable'.

Points) Points)