Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $37, $6, and $12, respectively. The president is pleased with the following performance report:

Data Table

	Actual Costs	Static Budget	Variance
Direct materials	$391,500	$425,500	$34,000 F
Direct manufacturing labor	67,500	69,000	1,500 F
Direct marketing (distribution) labor	128,500	138,000	9,500 F

Actual output was 10,500 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.)

	1	2(1-3)		3	4(3-5)		5
	Actual Results	Flexible Budget Variance		Flexible Budget	Sales Volume Variance		Static Budget
Output units
Direct materials
Direct manufacturing labor
Direct marketing labor
Total Direct labor cost