Mt assignment had me make a master budget followed by a static budget based on budgeted sales, and now I'm to make a flexible profit and loss budget based on actual sales, with prices in labour, overheads and materials being 10% more expensive. my fixed overhead is $ 115.614 with a standard price $7.74 and standard cost of $9.67 and my variable is $5399 with standard price of 0.36 and standard cost of 0.45. production was to be 1046 but was actually 994, I'm confused as to how to add 10% increase in cost ? to the standard price and then calculate by the new hours? or just the total amount and divide by hours to get a new rate