Actual output was $10,000$ attach$$ cases. Assume all three direct$-$cost items above are variable costs. Requirement Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. make sure to enter $"0"$ in the appropriate field. If the variance is zero, do not select a label.$)$Actual ResultsFlexible$-$Budget VarianceSales$-$Volume VarianceFF Is the president's pleasure justified? The existing performance report is a analysis, based on a static budget. It makes no adjustment for changes in output levels. The existing performance report shows a favourable total direct cost variance of $\backslash$$ $39200$ The revised performance report reveals that this variance is due to the decrease in output units from the amount budgeted. The president should analyze the price and efficiency variances for each cost category to assist in identifying the causes.