COSt P10-3A Ratchet Company flexible report for the company's Assembling Departmentosts. The A uses budgets company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable U Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance 1,000 F 2,800 F 200 U 500 F 100 F 400 U 48,000 $47,000 51,200 54,00024,200 24,000 18,000 15,000 12,000 17,500 14,900 12,400 167,200 171.000 167,.2003,800 F Total variable Fixed costs Rent Supervision Depreciation 12,000 17,000 6,000 35,000 12,000 17,000 6,000 35,000 $206,000 $202,200 Total fixed Total costs $3,800 F The monthly budget amounts in the report were based on an expected productiond 60,000 units per month or 720,000 units per year. The Assembling Department managers pleased with the report and expects a raise, or at least praise for a job well done. The con pany president, however, is unhappy with the results for August because only 58,000 t5 were produced. Instructions (a) State the total monthly budgeted cost formula. August using flexible budget data. Why does this report for evaluating performance than the report based on static bou budget report for provide a bette get data? report using Blexible actual cost in (c) In September, 64,000 units were produced. Prepare the budget data, assuming (1) each variable cost was 10% higher than its August, and (2) fixed costs were the same in September as in