Marigold Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows.

MARIGOLD COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$49,600	$48,500	$1,100	Favorable
Direct labor	57,040	54,040	3,000	Favorable
Indirect materials	27,280	27,580	300	Unfavorable
Indirect labor	22,320	21,910	410	Favorable
Utilities	15,500	15,390	110	Favorable
Maintenance	7,440	7,630	190	Unfavorable
Total variable	179,180	175,050	4,130	Favorable
Fixed costs
Rent	11,500	11,500	-0-	Neither Favorable nor Unfavorable
Supervision	17,100	17,100	-0-	Neither Favorable nor Unfavorable
Depreciation	7,100	7,100	-0-	Neither Favorable nor Unfavorable
Total fixed	35,700	35,700	-0-	Neither Favorable nor Unfavorable
Total costs	$214,880	$210,750	$4,130	Favorable

The monthly budget amounts in the report were based on an expected production of62,000units per month or744,000units 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 only60,000units were produced.