Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank. The company's operating budget and actual results for September 2014 included these data:

The budgeted amounts for Sept 2014 were:

Number of checkbooks 17000

selling price per book $22

Variable cost per book $6

Fixed costs for the month $135000

The actual results for Sept 2014 were as follows:

Number of checkbooks produced and sold $15000

Average selling price per book $23

Variable cost per book $5

Fixed costs for the month $142000

The executive vice president of the company observed that the operating income for September was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company's management accountant, you have been asked to provide explanations for the disappointing September results.

Finance Management

develops its flexible budget on the basis of budgeted per-output-unit revenue and per-output-unit variable costs without detailed analysis of budgeted inputs.

Requirements:

1. Prepare a static budget based variance analysis of the Sept performance.

2. Prepare a flexible budget based variance analysis of the Sept performance.

3. Why might Finance Management find the flexible budget based variance analysis more informative than the static budget based variance analysis? Explain you answer.

Please provide a details of fomula used so I can understand how the reults were reached. Thank you.