X 60 minutes remaining 1 OF 1 QUESTIONS REMAINING Bahrain Company's budgeted prices for direct materials, direct manufacturing labor and direct marketing labor per handbag are $38.50, $5.25, and $11.25 respectively. The president of the company is pleased with the following performance report: Static-budget Actual Results Static Budget Variances $410,000 $423,500 $13,500 F Direct Materials Direct Manufacturing $56.500 $57.750 $1,250 F Labor 2 Direct Marketing $119.000 $123,750 $4,750 F Labori Questions Filter (1) Save and Close 59 minutes remaining Labor Total Direct Costs $585,500 $605,000 1 OF 1 QUESTIONS REMAINING $19,500 F The actual output was 10,500 handbags. Assume all three direct-cost items shown are variable costs Required: LU 1) Prepare a revised performance report that uses a flexible budget and a static budget. te you need to use a performance report format which would show: Actual results. Flexible-budget variances Flexible budget, Sales-volume variances and Static budget), 2) Based on your results in requirement (1), is the president's satisfaction with the above-shown performance report justified? Explain. Questions Filter (1) Save and Case