Project #7: Static and Flexible Budgets (35 points) Bikes "R" Us provided the following information needed for the preparation of its static and flexible budget reports during January, 2022: $ Direct labor rate per direct labor hour $ 35.00 Actual direct labor cost, January 542,000 Expected direct labor hours per month 15,000 Actual direct labor hours, January 15,500 Prepare the following budget reports for January 2022 and evaluate the usefulness of each report. (a) A static budget report (16 points) NOTE: In order to receive full credit, you must use Excel formulas in each cell. For the 'Favorable/Unfavorable' cell, you must use Excel's 'F' function to have Excel determine if the result is 'Favorable' or 'Unfavorable'. (b) A flexible budget report (16 points) NOTE: In order to receive full credit, you must use Excel formulas in each cell. For the 'Favorable/Unfavorable' cell, you must use Excel's 'F' function to have Excel determine if the result is 'Favorable' or 'Unfavorable'. (c) Answer the following questions (3 points; 0.5 points per question): (1) What budget report (Static or Flexible) is more useful? (2) Which Budget (Static or Flexible) does not provide a proper basis for evaluating performance? (3) Which Budget (Static or Flexible) is not based on the hours actually worked? (4) Which Budget (Static or Flexible) provides a proper basis for evaluating performance? (5) Which Budget (Static or Flexible) is based on the hours actually worked? (6) What type of budget (Operating or Financial) is the 'Direct Labor' budget? Answer parts (a), (b), and (c) in the cells below. (a) Prepare the Static Budget Report for Bikes "R" Us using the information provided above: (16 Points) Rooney Company Static Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual Difference Favorable/Unfavorable Direct labor ? ? ? Total Points 3 points 1 point 3 points 9 points Formula Points 1.5 points .5 points 1.5 points 8 points (b) Prepare the Flexible Budget Report for Bikes "R" Us using the information provided above: REMEMBER: You must use an 'IF formula to have Excel determine if the Difference is 'Favorable' or 'Unfavorable (16 Points) Rooney Company Flexible Direct Labor Budget Report For the Month Ended January 31, 2022 Budget Actual Difference Direct labor ? ? ? Total Points 3 points 1 point 3 points Formula Points 1.5 points .5 points 1.5 points (c) Answer the following questions in the 'Yellow' shaded cells below: REMEMBER: You must use an 'IF formula to have Excel determine if Favorable/Unfavorable the Difference is ? 'Favorable' or 9 points 'Unfavorable 8 points (3 Points - 0.5 points per question) (1) What budget report (Static or Flexible) is more useful? (2) Which Budget (Static or Flexible) does not provide a proper basis for evaluating performance? (3) Which Budget (Static or Flexible) is not based on the hours actually worked? (4) Which Budget (Static or Flexible) provides a proper basis for evaluating performance? (5) Which Budget (Static or Flexible) is based on the hours actually worked? (6) What type of budget (Operating or Financial) is the 'Direct Labor' budget