The budgeted prices for direct materials, direct manufacturing labour and direct marketing (distribution) labour per attach case

The budgeted prices for direct materials, direct manufacturing labour and direct marketing (distribution) labour per attaché case are €40, €8 and €12, respectively. The chairman is pleased with the following performance report:

Required
Actual output was 8800 attaché cases. Is the chairman's pleasure justified? Prepare a revised performance report that uses a flexible budget and a static budget. Assume all three direct costs items are variable costs.

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Actual costs Static budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) 364 000 78000 400000 80000 636000 F 2000 F labour 110000 120000 10000 F