3-Flexible budget. The budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are 40$, 8$, and 12$, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials 364,000 $ Direct manufacturing labor 78,000 Direct marketing (distribution) 110,000 labor 400,000 $ 80,000 36,000 $ F 2,000 F 120,000 10,000 F REQUIRED: || Actual output was 8,800 attach cases. Is the president's pleasure justified? Prepare a revised performance report that uses a flexible budget and Static budget. Assume all three direct costs items are variable costs