Action Bonus Points C Search Question 1 of 4 -12 Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is a follows, RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Manufacturing Costs Budget Variable costs Direct materials $50,840 Direct labor 55,800 Indirect materials 27,280 Indirect labor 18,600 $49,840 $1,000 Favorable 52.500 3,300 Favorable 27.480 200 Unfavorable 18,180 420 Favorable Utilities 18,600 18,460 140 Favorable 9.920 10,220 Maintenance 300 Unfavorable uestion 1 of 4 -/2 Maintenance 4.920 10,220 300 Untavorable Total variable 181,040 176,680 4,360 Favorable Fixed costs Rent 11,700 $11.700 -0- Neither Favorable nor Unfavorable Supervision Depreciation 18,600 18,600 -0- Neither Favorable nor Unfavorable 7.700 7.700 -0- Neither Favorable nor Unfavorable 38,000 38,000 -0- Neither Favorable nor Unfavorable $219,040 $214,680 $4,360 Favorable Total fixed Total costs The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 60,000 units were produced (a) State the total monthly budgeted cost formula (Round cost per unit to 2 decimal places, e.g. 1.25.) $ The formula is + variable costs of $ per unit. Question 1 of 4 > -12 E The formula is $ + variable costs of $ per unit (b) Prepare a budget report for August using flexible budget data (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Diffe Fave Unfa: Neither nor Und Budget Actual Costs 24 dtv A 5) MacBook Air Question 1 of 4 - /2 In September, 66,000 units were produted. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Diffi Fav Unfa Neither nor Un Budget Actual Costs $ $