Blue Spruce Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. BLUE SPRUCE COMPANY Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable. Neither Favorable nor Unfavorable. Manufacturing Costs Budget Actual Variable costs Direct materials $57,200 $56,100 $1,100 Favorable Direct labor 61,100 57,600 3,500 Favorable Indirect materials 26,000 26,100 100 Unfavorable Indirect labor 24,700 24,300 400 Favorable Utilities 19,500 19,330 170 Favorable Maintenance. 7,800 8,170 370 Unfavorable Total variable. 196,300 191,600 4,700 Favorable Fixed costs Rent 10,300 10,300 Supervision 18,300 18,300 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation 6,800 6,800 -0- Neither Favorable nor Unfavorable Total fixed i 35,400 Total costs 35,400 -0- Neither Favorable nor Unfavorable $231,700 $227,000 $4,700 Favorable The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780,000 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 63,000 units were produced.