4 Midland Manufacturing Inc. has just completed 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. Matoika Marine Cost Control Report For the Month Ended August 31 20 points Units Produced 01:52:45 Variable costs: Marine supplies Emmission tests Other Variable Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Actual 935 Budget 550 Variance 385 F $ 9,050 11,430 2,400 590 $ 8,800 6,600 $ 250 U 4,830 U 1,100 1,300 U 330 23,470 16,830 260 U 6,640 U 18,500 18,500 4,700 3,450 1,250 U 1,850 1,850 760 595 25,810 $49,280 24,395 165 U 1,415 U $41,225 $ 8,055 U The managing director was very unhappy with this report, claiming that her costs were higher than expected. She also pointed out that the additional costs had been fully covered by payments from suppliers. The accountant who prepared the report 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 varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance). Round "Cost Formula" answers to 2 decimal places) Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Cost Formula (Per unit) 935 Variable costs: Medical supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost 11,430 2,400 590 $ 234,870 Total cost Spending or Budget Variance Flexible Budget Static Budget Activity-Level (units) 935 550