B. Prepare a budget report for August using flexible budget data.

C. In September, 65,000 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) fixed costs were the same in September as in August. (List variable costs before fixed costs.)

Marigold Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. MARIGOLD COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Budget Actual Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities $51,600 56,400 28,800 22,800 15,000 8,400 $50,600 53,600 29,000 22,380 14,860 8,740 $1,000 Favorable 2,800 Favorable 200 Unfavorable 420 Favorable 140 Favorable 340 Unfavorable Maintenance Total variable 183,000 179, 180 3,820 Favorable Fixed costs Rent -0- Supervision 12,200 16,900 7,700 12,200 16,900 7,700 -0- Depreciation -0- Total fixed 36,800 36,800 -0- Total costs $219,800 $215,980 $3,820 Favorable The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 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 58,000 units were produced. * Question 4 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