Current Attempt in Progress 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 $50,840 $49,840 $1,000 Favorable Direct labor 55,800 52 500 3,300 Favorable Indirect materials 27.280 27.480 200 Unfavorable Indirect labor 18.600 18.180 420 Favorable Utilities 18.800 18,460 140 Favorable Maintenance 9,920 10,220 300 Unfavorable Total variable 181.040 176.680 4,360 Favorable Fixed costs Rent 11.700 11.700 -0. Neither Favorable nor Unfavorable Supervision 18,600 18.600 -0 Neither Favorable nor Unfavorable Depreciation 7.700 7,700 -0- Neither Favorable nor Unfavorable Totalfoed 38,000 38.000 -O- Neither Favorable nor Unfavorable Total costs $219.040 $214,650 $4,360 Favorable The monthly budget amounts in the report were based on an expected production of 62.000 units per month or 744.000 units per year. The Assembling Department manager is pleased with the report and expects are at least rate for job well done. The company president, however, is unhappy with the results for Aust because only 60.000 units were produced Question 5 of 6