(c) In September, 67,000 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs x > Direct Materials 57,620.00 58,388.00 768.00 Unfavorable x X Direct Labor 64,320.00 62,788.00 1,532.00 Favorable x Indirect Materials 32,160.00 33,484.00 1,324.00 unfavorable X x! Indirect Labor 22,780.00 23,122.00 342.00||| Unfavorable X Utilities 20,100.00 20,680.00 580.00 Unfavorable Maintenance 10,720.00 11,484.00 764.00 Unfavorable Total Variable Costs 207,700.00 209,946.00 2,246.00 Unfavorable Fixed Costs Rent 11,100.00 11,100.00 Neither Favorable nor Unfavorable > Supervision 16,000.00 16,000.00 [Neither Favorable nor Unfavorable v > Depreciation 6,800.00 6,800.00 Neither Favorable nor Unfavorable Total Fixed Costs 33,900.00 33,900.00 Neither Favorable nor Unfavorable v X Total Costs 241,600.00 243,846.00 2,246.00 Neither Favorable nor Unfavorable Problem 23-03A a, b1, c (Part Level Submission) Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATCHET COMPANY 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 $54,180 $53,080 $1,100 Favorable Direct labor 60,480 57,080 3,400 Favorable Indirect materials 30,240 30,440 200 Unfavorable Indirect labor 21,420 21,020 400 Favorable Utilities 18,900 18,800 100 Favorable Maintenance 10,080 10,440 360 Unfavorable Total variable 195,300 190,860 4,440 Favorable Fixed costs Rent 11,100 11,100 -O- Neither Favorable nor Unfavorable Supervision 16,000 16,000 -0- Neither Favorable nor Unfavorable Depreciation 6,800 6,800 -0- Neither Favorable nor Unfavorable Total fixed 33,900 33,900 -O- Neither Favorable nor Unfavorable Total costs $229,200 $224,760 $4,440 Favorable (c) In September, 67,000 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Buaget Actual Costs nor Unfavorable $ $
