Direct manufacturing labor 92,400 9.600 U 82,800 12,600 F 95,400 139,400 10,600 Direct marketing labor U 128,800 19,600 F 148,400 $ 597.100 $ 35,900 $ 561,200 $ 85,400 $ 646,600 Total direct costs U F 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. The existing performance report favorable shows a variance shows each direct cost category to have a(n) total direct cost variance of variance unfavorable indicating 646600 The flexible-budget efficient use of each less direct cost item than was budgeted, or the use of more costly direct cost items than was budgeted, or both.