" -Z 7 Flexible budget. L'Accessorio, an Italian manufacturer of leather belts, budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per luxury belt41, 65, and 1 1v respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials 373 .500 410,000 36,500 F Direct manufacturing labor 48,600 50,000 1,400 P Direct marketing (distribution) labor 103.500 110.000 6.500 .F Actual output was 9,000 luxury wallets. Assume all three direct-cost items shown are variable costs. Is the president's aptimismjustied? Prepare a revised performance report, that uses a exible budget and a static budget