Carla Vista Company uses budgets in controlling costs. The August 2022 budget report for the companys Assembling Department is as follows. Carla Vista Company

Budget Report

Assembling Department

For the Month Ended August 31, 2022

Difference

Favorable

Unfavorable

Neither Favorable

Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labor 57,820 54,520 3,300 Favorable Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable Maintenance 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs Rent 12,100 12,100 -0- Neither Favorable nor Unfavorable Supervision 19,000 19,000 -0- Neither Favorable nor Unfavorable Depreciation 7,300 7,300 -0- Neither Favorable nor Unfavorable Total fixed 38,400 38,400 -0- Neither Favorable nor Unfavorable Total costs $219,530 $214,750 $4,780 Favorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 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 1 company president, however, is unhappy with the results for August because only 57,000 units were produced.

a & b.

a. State the total monthly budgeted cost formula

The formula is $____ + variable costs of $____ per unit.

b. Prepare a budget report for august using flexible budget data.

Carla Vista Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is ar fallawn r month or 708,000 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 57,000 units were produced. CARLA VISTA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable Budget Actual Costs $ $ $ $ $