BRANIBLE CURIPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual 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 -- Neither Favorable nor Unfavorable Depreciation 7,500 7,500 -0-Neither Favorable nor Unfavorable Total fixed 38,30038,300 -0- Neither Favorable nor Unfavorable Total costs $221,910 $217,710 54,200 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 ta + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) BRAMBLE COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 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.) BRAMBLE COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs