Ivanhoe Company uses budgets in controlling costs. The August 2022 budget report for the companys Assembling Department is as follows.

Ivanhoe Company Budget Report Assembling Department For the Month Ended August 31, 2022
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$ 53,680	$ 52,580	$ 1,100	Favorable
Direct labor	59,780	56,480	3,300	Favorable
Indirect materials	29,280	29,380	100	Unfavorable
Indirect labor	19,520	19,060	460	Favorable
Utilities	15,250	15,140	110	Favorable
Maintenance	12,200	12,530	330	Unfavorable
Total variable	189,710	185,170	4,540	Favorable
Fixed costs
Rent	11,700	11,700	0	Neither Favorable nor Unfavorable
Supervision	18,500	18,500	0	Neither Favorable nor Unfavorable
Depreciation	7,300	7,300	0	Neither Favorable nor Unfavorable
Total fixed	37,500	37,500	0	Neither Favorable nor Unfavorable
Total costs	$ 227,210	$ 222,670	$ 4,540	Favorable

The monthly budget amounts in the report were based on expected production of 61,000 units per month or 732,000 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 59,000 units were produced.

(a) & (b)

(a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.)

The formula is

$ enter a dollar amount + variable costs of $ enter a dollar amount per unit.

(b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)

IVANHOE COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022
		Budget		Actual Costs		Favorable Unfavorable Neither Favorable nor Unfavorable
select an opening flexible budget report item		enter a number of units		enter a number of units
select an opening name for section one
select a flexible budget report item		$ enter a dollar amount		$ enter a dollar amount		$ enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing name for section one		enter a total amount for the section one		enter a total amount for the section one		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select an opening name for section two
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a flexible budget report item		enter a dollar amount		enter a dollar amount		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing name for section two		enter a total amount for section two		enter a total amount for section two		enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable
select a closing name for this report				$ enter a total amount for this report		$ enter a dollar amount	select an option FavorableUnfavorableNeither Favorable nor Unfavorable

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.)