In September 69,000 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.

VARIABLE COSTS

Variable Costs
Direct Materials	57200	56100	1100	Favorable
Direct Labor	61100	57600	3500	Favorable
Indirect materials	26000	26100	100	Unfavorable
Indirect Labor	24700	24300	400	Favorable
Utilities	19500	19330	170	Favorable
Maintenance	7800	8170	370	Unfavorable
Total Variable	196300	191600	4700	Favorable
Fixed Costs
Rent	10300	10300	0	Neither
Supervision	18300	18300	0	Neither
Depreciation	6800	6800	0	Neither
Total Fixed	35400	35400	0	Neither
TOTAL COSTS	231700	227000	4700	Favorable

The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780,000 units 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 only 63,000 units were produced.