1. The following summary data are from a performance report for Smudge Company for August, during which 8,300 units were produced. The budget reflects the company's normal capacity of 9,000 units. Actual Costs Budget Variance (8,300 units) (9,000 units) S (F Direct material $105,750 $108,000 $2,250) (F Direct labor $216,475 $220,500 $4,025 Variable overhead $83,630 $89,370 $5,740 (U Fixed overhead $51,200 $50,000 ($1,200) ) (F Total $457,055 $467,870 $10,815 ) Revise the performance report using flexible budgeting and comment on the general implications of the revised report.