In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.)

(a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) 3.01 per unit. | The formula is = $1-38300 + variable costs of (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 59000 59000 Variable Costs Direct Materials 49560 50240 680 Unfavorable Direct Labor 57820 56680 1140 Favorable Indirect Materialsv 24780 25920 1140 Unfavorable Indirect Labor 18880 19090 210 Unfavorable Utilities 14750 15080 330 Unfavorable Maintenance 22800 12400 600 Unfavorable Total Variable Costs 177590 179410 1820 Unfavorable Fixed Costs Rent 11800 11800 Neither Favorable nor Unfavorable 19000 7500 38300 0 Neither Favorable nor Unfavorable Supervision Depreciation Total Fixed Costs 7500 Neither Favorablenorunfavorable 383 38300 O Neither Favorable nor Unfavorable Total Costs $215890 217710$ 1820 Unfavorable RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance $51,240 $50,240 $1,000 Favorable 59,780 56,680 3,100 Favorable 25,620 25,920 300 Unfavorable 19,520 19,090 430 Favorable 15,250 15,080 170 Favorable 12,200 12,400 200 Unfavorable Total variable 183,610 179,410 4,200 Favorable Fixed costs Rent Supervision Depreciation 11,800 11,800 -0- Neither Favorable nor Unfavorable 19,000 19,000 -0- Neither Favorable nor Unfavorable 7,500 7,500 -0- Neither Favorable nor Unfavorable 38,300 38,300 -0 Neither Favorable nor Unfavorable Total fixed Total costs $221,910 $217,710 $4,200 Favorable