Bonita Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. BONITA COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $53,680 $52,680 $1,000 Favorable Direct labor 54,900 52, 100 2.800 Favorable Indirect materials 28,060 28,160 100 Unfavorable Indirect labor 19,520 19,060 460 Favorable Utilities 15,250 15,060 190 Favorable Maintenance 12,200 12,300 100 Unfavorable Total variable 183,610 179,360 4,250 Favorable Fixed costs Rent 12,600 12,600 -O- Neither Favorable nor Unfavorable Supervision 18,600 18,600 -O- Neither Favorable nor Unfavorable Depreciation 7,800 7,800 -0- Neither Favorable nor Unfavorable Total fixed 39,000 39,000 -O- Neither Favorable nor Unfavorable Total costs $222,610 $218,360 $4,250 Favorable The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 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 59,000 units were produced. (a) & (b) Your answer is correct. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is fixed costs $ 39000 + variable costs of $ 3.01 per unit. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is fixed costs $ 39000 + variable costs of $ 3.01 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Budget Actual Costs Units 59000 59000 Variable Costs Direct Materials 51920 i tA $ 52680 i $ Direct Labor 53100 i 52100 i Indirect Materials 27140 28160 i Indirect Labor 18880 19060 i Utilities 14750 i 15060 i Maintenance 11800 12300 Total Variable Costs 177590 179360 Fixed Costs Rent 12600 12600 i Supervision 18600 i 18600 i Depreciation 7800 7800 Total Fixed Costs V 39000 i 39000 Total Costs $ 216590 $ 218360 $ (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is fixed costs 39000 + variable costs of $ 3.01 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs 000 59000 $ 52680 i $ 760 i Unfavorable 52100 1000 Favorable 28160 i 1020 i Unfavorable 19060 i 180 i Unfavorable 15060 i 310 i Unfavorable 12300 i 500 i Unfavorable 179360 1770 i Unfavorable 12600 i i Neither Favorable nor Unfavorable 18600 Neither Favorable nor Unfavorable V 7800 i Neither Favorable nor Unfavorable 39000 i Neither Favorable nor Unfavorable 218360 1770 i Unfavorable 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.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Budget Actual Costs Units 65000 65000 Variable Costs Direct Materials $ $ $ Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent 12600 12600 Supervision > 18600 18600 Depreciation 7800 7800 Total Fixed Costs 39000 39000 Total Costs $ $ $ e Textbook and Media Save for Later Last saved 16 minutes ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cos 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.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable get Actual Costs 65000 65000 $ $ Unfavorable Favorable Unfavorable > Unfavorable > Unfavorable 18600 18600 Neither Favorable nor Unfavorable 7800 7800 Neither Favorable nor Unfavorable 39000 39000 Neither Favorable nor Unfavorable $ $ Unfavorable > e Textbook and Media Save for Later Last saved 16 minutes ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes