A report prepared by Management comparing actual costs to budgeted costs appears below. Matoika Marine Cost Control Report For the Month Ended August 31 Units Produced Variable costs: Marine supplies Actual 800 Budget 500 Variance 300 F Emmission tests Other Variable Administrative supplies $ 8,500 8,500 $ 5,250 6,800 $ 3,250 U 1,900 1,150 550 6:31 325 1,700 U 750 U 225 U Total variable cost 19,450 13,525 5,925 U Fixed costs: Staff salaries 18,000 18,000 Equipment depreciation 3,600 2,900 700 U Rent 1,800 1,800 Utilities 650 Total fixed cost 24,050 Total cost $43,500 540 23,240 $36,765 110 U 810 U $ 6,735 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 (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places) 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 Total cost Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Cost Formula (Per unit) 800 Spending or Budget Variance Activity-Level (units) Flexible Budget Static Budget 800 500