Harvin Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $40, $10, and $13, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials $ 396,000 $ 432,000 $ 36,000 F Direct manufacturing labour 105,200 108,000 2,800 F Direct marketing (distribution) labour 128,900 140,400 11,500 F Actual output was 9,800 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. Harvin Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $40, $10, and $13, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials $ 396,000 $ 432,000 $ 36,000 F Direct manufacturing labour 105,200 108,000 2,800 F Direct marketing (distribution) labour 128,900 140,400 11,500 F Actual output was 9,800 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. Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variance Static Budget Output units Direct materials Direct manufacturing labour Direct marketing labour Direct marketing labour Total direct costs Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes V for changes in output levels. Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes V for changes in output levels. Vin output units from the amount The existing performance report shows a budgeted. The president should analyze the total direct cost variance of $ The revised performance report reveals that this variance is due to the for each cost category to assist in identifying the causes