Anson Company uses budgets in controlling costs. The May $2017$ budget.report

for the company's Packaging Department is as follows.

ANSON COMPANY

Budget Report

Packaging Department

For the Month Ended May $31,2017$

$\frac{\text{D}\text{i}\text{f}\text{f}\text{e}\text{r}\text{e}\text{n}\text{c}\text{e}}{\text{F}\text{a}\text{v}\text{o}\text{r}\text{a}\text{b}\text{l}\text{e}F}$

Unfavorable U

The $-$monthly budget amounts in the report were based on an expected production of $50,000$ units per month or $600,000$ units per year.

The company president was displeased with the department manager's performance. The department manager, who thought he had done a good job, could not understand the unfavorable results. In May, $55,000$ units were produced.

Instructions

$($b$)$ Prepare total budgeted cost formula.

vide a be budget report for May using flexible budget data. Why does this report prodata?