Concord Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows.

CONCORDCOMPANY

Budget Report

Assembling Department

For the Month Ended August 31, 2020

ManufacturingCosts Budget Actual Diff Favorable or Not

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 200FavorableMaintenance. 11,520 11,780. 260 Unfavorable

Total variable. 200,320. 195,930. 4,390 Favorable

Fixed Costs

Rent. 10,800 10,800 -0-Neither

Supervision 18,600 18,600 -0- Neither

Depreciation 5,500 5,500 -0- Neither

Total fixed 34,900 34,900 -0-Neither

Total costs $235,220 $230,830 $4,390 Favorable

The monthly budget amounts in the report were based on an expected production of64,000units per month or768,000units 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 only62,000units were produced.

(a) State the total monthly budgeted cost formula.(Round cost per unit to 2 decimal places, e.g. 1.25.)

The formula isfixed costs $________+ variable costs of $_______ per unit

rounded to 2 decimal places

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