In order to control costs, Pressed Co. uses budgets. The February 2021 budget report for Sweets firm's Mixing Department is provided below. The expected production of 42,000 units per month or 504,000 units per year were the base for the report monthly budget amounts. The president of Pressed Co. was displeased with the performance of the mixing department manager. Nevertheless, the mixing department manager was not able to understand the unfavorable results and thought he had done a great job. The actual units produced in February were 40,600. Pressed Company Budget Report Mixing Department For the Month Ended February 28, 2021 Difference F Unfavorable U Favorable Manufacturing Cost Variable costs Budget Actual Direct materials SAR 33,600 SAR 32,900 SAR 700 F Direct labor 35,840 16,940 37,800 1,960 F Indirect materials 16,800 140 U Indirect labor 350 F 12,600 10,500 12,250 Utilities 10,430 70 F Maintenance 8,400 119,700 8,680 280 U Total variable 117,040 2,660 F Fixed costs Rent 8,400 8,400 11,900 Supervision Depreciation 11,900 4,200 4,200 Total fixed 24,500 24,500 Total costs SAR144,200 SAR141,540 SAR 2,660 F Instructions: A. Prepare a flexible budget report for Pressed Co. for February. (Show ALL your caleulations). . 1. Explain why the flexible budget is a better performance evaluation base than the report based on static budget data. 2. Interpret why the president of Pressed Co. was displeased with the performance of the mixing department manager. 3. Advice the manger on how to improve the mixing department performance.