Avery Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attache case are 45 6 14 respectively

Avery Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attache

case are

45

6

14

respectively.  The president is pleased with the following performance report:

Actual Costs

Static Budget

Variance

Direct Materials

433000

468000

35000

F

Direct manufacturing labor

60900

62400

1500

F

Direct marketing (distribution) labor

133600

145600

12000

F

Actual output was

9400

attache cases.  Assume all three direct-cost items above are variable costs.

Requirement

1.) Is the president's pleasure justified?  Prepare a revised performance report that uses a flexible budget and a static budget