Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $43, $6, and $13,

respectively. The president is pleased with the following performance report.

Actual Costs

Static Budget

Variance

Direct materials

$438,000

$473,000

$35,000 F

Direct manufacturing labor

63,600

66,000

2,400 F

Direct marketing (distribution) labor

133,500

143,000

9,500 F

Actual output was 10,000 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 favorable (F) or unfavorable (U). (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
Output units	048yegr
Direct materials
Direct manufacturing labor
Direct marketing labor
Total direct costs

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