23 Budgetary Control and Responsibility Accounting formule, and ports for report for the company's Assembling Department is as follows. P23.3A (LO 1, 2), AN Ratchet Company uses budgets in controlling costs. The August 2022 budget Excel Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Unfavorable U Actual $ 47,000 51,200 24,200 17.500 14,900 12,400 167,200 $1.000 F 2,800 F 200 U 500 F 100 F 400 U 3.800 F 12,000 17.000 6,000 -0- -0- -O- Manufacturing Costs Budget Variable costs Direct materials $ 48,000 Direct labor 54,000 Indirect materials 24,000 Indirect labor 18,000 Utilities 15,000 Maintenance 12,000 Total variable 171.000 Fixed costs Rent 12,000 Supervision 17,000 Depreciation 6,000 Total fixed 35,000 35,000 Total costs $206,000 S202,200 The monthly budget amounts in the report were based on an expected production of 60,000 units pred month or 720,000 units per year. The ressembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced. Instructions a. State the total monthly budgeted cost formula. b. Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? c. In September, 64,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. -0- $3,800 F T