Ayayai Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. AYAYAI COMPANY Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor 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 11,100 707 Neither Favorable nor Unfavorable Supervision 16,000 16,000 70* Neither Favorable nor Unfavorable Depreciation 6,800 6,800 0 Neither Favorable nor Unfavorable Total xed 33,900 33,900 70* Neither Favorable nor Unfavorable Total costs $229,200 $224760 $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 ajob well done. The company president, however, is unhappy with the results for August because only 6 1,000 units were produced. Your answer is partially correct. (a) State the total monthly budgeted cost equation. (Round cost per unit to 2 decimal places, e.g. 1.25.) The equation is fixed costs $ 33900 + variable costs of $ 3.10 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) AYAYAI COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Ne Budget Actual Costs n Units 61000 61000 Indirect Materials Direct Labor $ 52460 $ 53080 620 Indirect Materials 58560 57080 1480 Indirect Labor 29280 30440 1160 Utilities 20740 21020 280 Maintenance 18300 18800 500 Maintenance 9760 10440 680Indirect Materials Direct Labor 52460 53080 620 Indirect Materials V 58560 57080 1480 Indirect Labor 29280 30440 1160 Utilities 20740 21020 280 Maintenance 18300 18800 500 Maintenance 9760 10440 680 Total Variable Costs v 189100 190860 1760 Fixed Costs Supervision 11100 11100 Depreciation 16000 16000 Fixed Costs 6800 6800 Total Fixed Costs V 33900 33900 Total Costs V 223000 224760 $ 1760 e Textbook and Media Save for Later Attempts: 2 of 3 used Submit Answer61000 61000 52460 53080 620 Favorable 58560 57080 1480 Unfavorable 29280 30440 1160 Unfavorable 20740 21020 280 Unfavorable 18300 18800 500 Unfavorable 9760 10440 680 i Unfavorable 189100 190860 1760 Unfavorable 11100 11100 0 Neither Favorable nor Unfavorable 16000 16000 0 Neither Favorable nor Unfavorable 6800 6800 Neither Favorable nor Unfavorable 33900 33900 O Neither Favorable nor Unfavorable 223000 224760 $ 1760 i Unfavorable