Show usefulness of flexible budgets in evaluating performance BE25.3 (LO 2) In Rooney Company, direct labor is $20 per hour. The company expects to operate at 10,000 direct labor hours each month. In January 2020, direct labor totaling $206,000 is incurred in working 10,400 hours. Prepare (a) a static budget report and (b) a flexible budget report. Evaluate the usefulness of each report