Martinez Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows MARTINEZ COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Budget Actual Favorable Unfavorable Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable $54,600 63,700 31,200 19,500 19,500 7,800 106,300 $53,500 60,000 31,400 19,100 19,370 8,010 191,950 $1,100 Favorable 3,100 Favorable 200 Unfavorable 400 Favorable 130 Favorable 210 Unfavorable 4,320 Favorable Fixed costs Rent 10,900 17,800 7,000 10,900 17,800 Supervision Depreciation Total fixed 7,000 35,700 $232,000 35,700 $227,680 Total costs $4,320 Favorable The monthly budget amounts in the report were based on expected production of 65.000 expects a raise, lastprise for a well done. The company dent, however, with there 600 per year. The Department managers pleased with the report and for August because only 63,000 units were produced (a) at the total monthly budgeted cost form ( wittee 1.25.)