453 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 compering ectual costs to budgeted costs appears below. Matoika Marine Cost Control Report For the Month Ended August 31 Actual 750 Units Produced Variable costs: Marine supplies comission tests Other Variable Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Budget 600 Variance 150 F $ 9,500 6,630 $ 7,560 6,300 $1,940 U 330 U 1,490 1,200 430 300 18,050 15,360 290 U 1100 2.600 U 13,000 13,000 3,100 2,650 450 U 1,300 1,300 600 515 85 U 18,000 $36,050 17,465 $32,825 5150 $3,225 U 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 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 variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie., zero variance). Round "Cost Formula" answers to 2 decimal places) Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Spending or Budget Variance Flexible Budget Static Budget Variable costs Marine supplies Emission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs Staff salaries Equipment depreciation Rent Utilities Cost Formula [Per unit] 750 Activity Level (units) 750 600 Variable costs Marine supplies Emmission tests Other variable Expenss Administrative supplies Total variable cost Fixed costs Staff salaries Equipment depreciation Rent Usities Total fixed cost Total cost Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Cost Formula (Per unit) 750 Spending or Budget Variance Flexible Budget Static Budget Activity-Level (units) 750 600