Ayayai Company uses budgets in controlling costs. The August 2017 budget report for the companys Assembling Department is as follows.

AYAYAI COMPANY

Budget Report

Assembling Department

For the Month Ended August 31, 2017

Difference | Manufacturing Costs . Budget Actual . Favorable/Unfavorable

Variable costs

Direct materials $54,180 $53,080 $1,100 Favorable

Direct labor 60,480 57,080 3,400 Favorable

Indirect materials 30,240 30,440 200 Unfavorable

Indirect labor 21,420 21,020 400 Favorable

Utilities 18,900 18,800 100 Favorable

Maintenance 10,080 10,440 360 Unfavorable

Total variable 195,300 190,860 4,440 Favorable

Fixed costs

Rent 11,100 11,100 0

Supervision 16,000 16,000 0

Depreciation 6,800 6,800 0

Total fixed 33,900 33,900 0

Total costs $229,200 $224,760 $4,440 Favorable

The monthly budget amounts in the report were based on an expected production of 63,000 units per month or 756,000 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 61,000 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 $3.10 per unit.