Connor Company's budgeted prices for direct materials, direct manufacturing labour, and direct marketing (distribution) labour per attach case are $38, $10, and $10, respectively. The president is pleased with the following performance report: Actual Costs Static Budget Variance Direct materials Direct manufacturing labour Direct marketing (distribution) labour $ 368,800 $ 103,600 95,000 402,800 $ 34,000 F 106,000 2,400 F 106,000 11,000 F Actual output was 9,200 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.