CALCULATOR PRINTER VERSION BACK NEXT Problem IU JA a, b, c (Video) Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATHIET 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 $57,200 $56,100 $1,100 Favorable Direct labor 61,100 57,600 3,500 Favorable Indirect materials 26.000 26,100 100 Unfavorable Indirect labor 24,700 24,300 400 Favorable Utilities 19,500 19,330 170 Favorable Maintenance 7,800 8,170 370 Unfavorable Total variable 196,300 191,600 4,700 Favorable Fixed costs 10,300 10,300 -0- Neither Favorable nor Unfavorable Supervision 18,300 18,300 -0-Neither Favorable nor Unfavorable Depreciation 6,800 6,800 -0-Neither Favorable nor Unfavorable Total forced 35,400 35.400 -- Neither Favorable nor Unfavorable Total costs $231,700 $227,000 $4,700 Favorable The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780,000 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 63,000 units were produced (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs or both whom