27 Matoika Marine Inc. has just finished its operations for August, which was a particularly busy month. They processed 24% more product than had been originally planned for the month. A report prepared by Management comparing actual costs to budgeted costs appears below. Units Produced Variable costs: Marine Supplies Emission tests Other Variable Administrative supplies Tetal variable sost Fixed costs Staff (alarles Equipment depreciation Rent Utilities total fixed test total cost Matoik Marine Cost Control Report Fon the Month Ended August 1 Actual Budget 800 550 Variance 330 F $ 6,950 10,430 2.190 570 58,250 $700 U 7,700) 2,730.0 1,100 1,090 U 22 R 22,140 37,270 4,070 U 16,506 10, 500 4,500 5,354 3,350 0 3,050 740 345 155 0 23,380 22,005 1,305 U $45,53 $39,355 $6,1750 The managing director was very unhappy with this report, claiming that his costs were higher than expected. He also pointed out that the additional costs had been fully covered by payments from suppliers. The accountant who prepared the repod pointed out that actual costs were a lot higher than promised in the budget Required: 1. Prepare a new performance report for August using the flexible budget approach, (Note Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report) (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e zaro variance). Round "Cost Formula" answers to 2 decimal places) 1. Prepare a new performance report for August using the flexible budget approach. (Note. Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report). (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places) Variable costs Marine supples Emmission tests Other vanable Expenses Administrative supplies Tutal variable cost Faxed costs Staff sanes Equipment depreciation Utos Total and cost Yotal cost Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Spending or Budget Variance Flexible Budget Static Budget Cost Formula (Per unit) 880 Activity-Level (units) 880 550