Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing(distribution) labor per attach case are $45, $8, and $10, respectively. The president is pleased with the following performance report:

Actual Costs	Static Budget	Variance
Direct materials	$415,000	$450,000	$35,000	F
Direct manufacturing labor	78,200	80,000	1,800	F
Direct marketing (distribution) labor	91,000	100,000	9,000	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.