Instructions:

1. Prepare a flexible budget for 55,000, 60,000, and 65,000 units.

2. Prepare a flexible budget performance report for 58,000 units.

Here are check figures.

Part 1, your flexible budget

• Total cost for 55,000 units = $191,750. Total cost for 60,000 units = $206,000. Total cost for 65,000 units = $220,250.

Part 2, your flexible budget performance report

• The net total of your variable costs have an unfavorable variance/difference ("U") of $1,900.

• Fixed costs budget = actual for all costs, so not a favorable or unfavorable difference.

• Total costs have an net total unfavorable variance/difference of $1,900.

23 Budgetary Control and Responsibility Accounting formula, and ports for report for the company's Assembling Department is as follows. P2.3A (LO 1, 2), AN Ratchet Company uses budgets in controlling costs. The August 2022 budget Excel Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Unfavorable U Budget Actual Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed $ 48,000 54,000 24,000 18,000 15,000 12,000 171,000 $ 47,000 51,200 24,200 17,500 14,900 12.400 $1.000 F 2,800 F 200 U 500 F 100 F 400 U 167,200 3.800 F -0- -0- -0- 12,000 17,000 6,000 35,000 $206,000 12,000 17,000 6,000 35,000 $202,200 -0-- Total costs $3,800 F month or 720,000 units per year. The Assembling Department manager is pleased with the report and The monthly budget amounts in the report were based on an expected production of 60,000 uports and with the results for August because only 58,000 units were produced