Bramble Company uses budgets in controlling costs. The August 2020 budget report for the companys Assembling Department is as follows.

BRAMBLE COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$51,240	$50,240	$1,000	Favorable
Direct labor	59,780	56,680	3,100	Favorable
Indirect materials	25,620	25,920	300	Unfavorable
Indirect labor	19,520	19,090	430	Favorable
Utilities	15,250	15,080	170	Favorable
Maintenance	12,200	12,400	200	Unfavorable
Total variable	183,610	179,410	4,200	Favorable
Fixed costs
Rent	11,800	11,800	0	Neither Favorable nor Unfavorable
Supervision	19,000	19,000	0	Neither Favorable nor Unfavorable
Depreciation	7,500	7,500	0	Neither Favorable nor Unfavorable
Total fixed	38,300	38,300	0	Neither Favorable nor Unfavorable
Total costs	$221,910	$217,710	$4,200	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) 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.

(b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)

BRAMBLE COMPANY

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.)