%E7-22 (similar to) Question Help Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $44, $10, and $15, respectively. The president is pleased with the following performance report: (Click the icon to view the performance report.) Actual output was 9,600 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. 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 "o" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Flexible-Budget Varianco Static Budget 11,000 9,600 0 Output units Flexible Sales-Volume Budget Varianco 9,600 1,400 u $ $ 422,400 S 61,600 F 96.000 14.000 F 144.000 21,000 F Direct materials S 449,000 S 26,600 U $ 484,000 11.600 Direct manufacturing labor Direct marketing labor 107,600 155,500 110,000 165,000 11,500 U Total direct costs $ 712,100 S 49,700 $ 662,400 S 96,500 U F $ 759,000 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 shows a favorable total direct cost variance of 46900. The flexible-budget variance shows each direct cost category to have an) unfavorable variance Indicating less efficient use of each direct cost item than was budgeted, or the use of more costly direct cost items than was budgeted, or both. Choose from any list or enter any number in the input fields and then click Check