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 Units Produced Variable costs: Marine supplies Emmission tests Other Variable Administrative supplies Actual 750 Budget 600 Variance 150 F $ 9,450 6,480 1,550 $ 8,100 6,300 1,200 $1,350 U 180 U 350 U 420 240 180 U Total variable cost 17,900 15,840 2,060 U Fixed costs: Staff salaries 12,000 12,000 Equipment depreciation 3,000 2,600 400 U Rent 1,200 1,200 - Utilities 590 510 Total fixed cost 16,790 16,310 80 U 488 u Total cost $34,690 $32,150 $2,540 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 Actual Spending or Budget Variance Flexible Budget Static Budget Variable costs Medical supplies Emmission tests Other variable Expenses Cost Formula (Per unit) 750 Activity-Level (gits) 750 600 1:13 Medical supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost 2. This part of the question is not part of your Connect assignment