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%E7-22 (book/static) A Question Help Bryant Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $43, $6, and $13, respectively. The president is pleased with the following performance report: E: (Click the icon to view the performance report.) 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. Prepare a revised performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable (F) or unfavorable (U). (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible Sales-Volume Static Flexible-Budget Variance Variance Results 10,000 Budget 10,000 Budget 11,000 0 1,000 U $ 438,000 $ 8,000 U F Output units Direct materials Direct manufacturing labor Direct marketing labor $ 430,000 $ 43,000 60,000 6,000 $ 473,000 66,000 3,600 U F 63,600 133,500 3,500 U 130,000 13,000 F 143,000 $ 635,100 $ 15,100 Total direct costs $ 682,000 U $ 620,000 $ 62,000 F Is the president's pleasure justified? The existing performance report is a Level 1 analysis, based on a static budget. It makes no adjustment for changes in output levels. The existing performance report shows a variance shows each direct cost category to have an) cost item than was budgeted, or the use of total direct cost variance of $ The flexible-budget variance indicating efficient use of each direct direct cost items than was budgeted, or both