7 Matoka 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 Matoika Marine Cost Control Report For the Month Ended August 31 Actual Budget Units Produced 935 550 Variance 385 F Variable costs: Marine supplies $9,050 $ 8,800 $ 2500 Emmission tests 11,430 6,600 4,830 U Other Variable 2,400 1,100 1,300 u Administrative supplies 590 330 260 U Total variable cost 23,470 16,830 6,648 U Fixed costs: Staff salaries 18,500 18,500 Equipment depreciation 4,700 3,450 1,250 U Rent 1,850 1,850 Utilities 768 $95 165 U Total fixed cost 25,810 24,395 1,415 U Total cost $49,280 $41,225 $8,055 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 (Le zero variance). Round "Cost Formula" answers to 2 decimal places) 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) Matoka Marine Flexible Budget Performance Report For The Month Ended August 31 Spending or Budget Variance Iesible Budget Static Dodge Actual Cost Furmule Per un 935 Varable coats Marine supplies $ 9.050 Emenission tests 11,430 Other variable Expenses 2.400 Administrative supples 590 Jotal variable cod $ 23,470 Fired coats Staff salaries $ 18.500 Equipment depreciation 4.700 Rent 1,850 Usities 760 Total Exed cost 25,810 Total cost F 49.200 2. This part of the question is not part of your Connect assignment Activity Level (units) 935 550