Build a formula and budget data:

Oriole Company Budget Report Assembling Department For the Month Ended August 31, 2022
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$52,460	$51,460	$1,000	Favorable
Direct labor	57,340	53,940	3,400	Favorable
Indirect materials	26,840	27,140	300	Unfavorable
Indirect labor	18,300	17,890	410	Favorable
Utilities	15,250	15,060	190	Favorable
Maintenance	6,100	6,350	250	Unfavorable
Total variable	176,290	171,840	4,450	Favorable
Fixed costs
Rent	11,000	11,000	-0-	Neither Favorable nor Unfavorable
Supervision	18,000	18,000	-0-	Neither Favorable nor Unfavorable
Depreciation	7,900	7,900	-0-	Neither Favorable nor Unfavorable
Total fixed	36,900	36,900	-0-	Neither Favorable nor Unfavorable
Total costs	$213,190	$208,740	$4,450	Favorable

The monthly budget amounts in the report were based on an expected production of61,000units per month or732,000units 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 only59,000units were produced.

(a) & (b)

(a) State the total monthly budgeted cost formula.The Formula is $_____ + variable costs of $___ per unit.

$_____ + variable costs of $___ per unit.

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

ORIOLE COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022
						Difference
		Budget		Actual Costs		Favorable Unfavorable Neither Favorable nor Unfavorable
Units		$59000		$59000
Variable Cost
Direct Materials		$		$51460		$	Unfavorable
Direct Labor		$		$53940		$	Favorable
Indirect Materials		$		$27140		$	Unfavorable
Indirect Labor		$		$17890		$	select an option: Favorable, Unfavorable, or Neither Favorable nor Unfavorable
Utilities		$		$15060		$	select an option: Favorable, Unfavorable, or Neither Favorable nor Unfavorable
Maintenance		$		$6350		$	Unfavorable
Total Variable Costs		$		$171840		$	select an option: Favorable, Unfavorable, or Neither Favorable nor Unfavorable
Fixed Coststs
Rent		$11000		$11000		$0	Neither Favorable nor Unfavorable
Supervision		$18000		$18000		$0	Neither Favorable nor Unfavorable
Depreciation		$7900		$7900		$0	Neither Favorable nor Unfavorable
Total Fixed Costs		$36900		$36900		$0	Neither Favorable nor Unfavorable
Total Costs		$		$208740		$_________	Unfavorable