$7-28$ Flexible budget. $($Refer to data in Exercise $7-26).$ Suppose the static budget was for $2,500$ units of output. Actual output was $2,000$ units. The variances are shown in the following report:

Direct materials Actual Results

Direct manufacturing labor

$$18,870$

Static Budget

Variance

$$25,000$

$$6,130F$

$$12,500$

$$3,680F$

$$8,820$