Matoika Marine Inc. has just finished its operations for August, which was a particularly busy month. They processed 24% more product than had been originally planned for the month. A report prepared by Management comparing actual costs to budgeted costs appears below. Matoika Marine Cost Control Report For the Month Ended August 31 Actual Units Produced Variable costs: Emmission tests 960 Budget 600 Variance 360 F Marine supplies $ 8,750 8,380 $ 5,250 7,500 $3,500 U 880 U Other Variable 1,990 1,200 790 U Administrative supplies. 530 300 Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities 19,650 14,250 230 U 5,400 U 12,500 12,500 4,100. 3,150 950 U 1,250 1,250 700 565 135 U Total fixed cost Total cost 18,550 $38,200 17,465 $31,715 1,085 U $6,485 U The managing director was very unhappy with this report, claiming that his costs were higher than expected. He also pointed out that the additional costs had been fully covered by payments from suppliers. The accountant who prepared the report pointed out that actual costs were a lot higher than promised in the budget. Required: 1. Prepare a new performance report for August using the flexible budget approach. (Note: Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.). (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places) Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 21 Required: 1. Prepare a new performance report for August using the flexible budget approach. (Note: Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.). (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie., zero variance). Round "Cost Formula" answers to 2 decimal places) Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Spending or Budget Variance Flexible Budget Static Budget Variable costs: Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Foxed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Cost Formula (Per unit) 960 2. This part of the question is not part of your Connect assignment. Activity-Level (units) 960 600