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 Favorable F Unfavorable U Budget Actual SAR Manufacturing Cost Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable 33,600 SAR 37,800 16,800 12,600 10,500 8,400 119,700 32,900 35,840 16,940 12,250 10,430 8,680 117,040 SAR 700 F 1,960 F 140 U 350 F 70 F 280 U 2,660 F Fixed costs Rent Supervision Depreciation Total fixed 8,400 11,900 4,200 24,500 8,400 11,900 4,200 24,500 0 0 0 Total costs SAR144,200 SAR 141.540 SAR 2,660 F Instructions: A. Prepare a flexible budget report for Pressed Co. for February. (Show ALL your calculations) B. 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