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Ayayai Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. AYAYAI COMPANY Budget Report Assembling

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Ayayai Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. AYAYAI COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Manufacturing Costs Budget Actual 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 Depreciation 6,800 6,800 Total fixed 33,900 33,900 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 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 Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) AYAYAI COMPANY Assembling Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units Variable Costs Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent Supervision Depreciation . In September, 67,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) faced costs were the same in September as in August (List variable costs before fixed costs.) AYAYAT COMPANY Assembling Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 67000 67000 . : . . . +

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