Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable 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	18,600	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
Total fixed	38,000	38,000	0	Neither Favorable nor Unfavorable
Total costs	$219,040	$214,680	$4,360	Favorable

monthlybudgetamountsinthereportwerebasedon anexpectedproductioof62,000unitpermonthor744,000unitsperyearThe companypresident,however,isunhappywiththeresultsforAugustbecauseonly60,000unitwerproduced.

InSeptember,66,000unitsweremadePreparethebudgetreportusingflexible budgetdataassumingeachvariablecostwas10%higherthanitsactualcostinAugust,andfixedcostswerethesame

prepare a flexible budget report