Budget Actual Costs nor Unfavorable Units Variable Costs Direct Labor C Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $53,760 $52,760 $1,000 Favorable Direct labor 61,440 58,240 3,200 Favorable Indirect materials 29,440 29,640 200 Unfavorable Indirect labor 21,760 21,310 450 Favorable Utilities 22,400 22,200 200 Favorable Maintenance 11,520 11,780 260 Unfavorable Total variable 200,320 195,930 4,390 Favorable Fixed costs Rent 10,800 10,800 -0- Neither Favorable nor Unfavorable Supervision 18,600 18,600 -O- Neither Favorable nor Unfavorable Depreciation 5,500 5,500 -O- Neither Favorable nor Unfavorable Total fixed 34,900 34,900 -O- Neither Favorable nor Unfavorable $235,220 $230,830 $4,390 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced