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 1,080 Units Produced Variable costs: Marine supplies Ennission tests Other Variable Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Budget Variance 600 480 F $ 8,900 12,230 2,650 600 $9,000 $ 100 F 8,100 1,200 300 4,130 U 1,450 U 300 U 24,380 18,600 5,780 u 19,500 19,500 4,000 3,500 1,300 u 1,950 770 27,020 $51,400 1,950 600 25,550 $44,150 170 0 1,470 U $7,250 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 selectina "F" for favourable. "U" for unfavourable, and "None" for no effect (i.e.. 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 Marins. Flexible Budget Performance Report For The Month Ended August 31 Varable costs Marine supplies Emmission tests Other variable Expenses Administrative supples! Total vanable cost Fixed costs Staff salaries Equement depreciation Ront Utites Total feed cost Total cost Actual Cost Formula (Per unit) 1000 Spending or Budget Variance Flexible Budget Static Budget Activity Level (units) 1080 600 4 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 Enmission tests Other Variable Administrative supplies Total variable cost Fixed costs: Staff salaries Equipment depreciation. Rent Utilities Total fixed cost Total cost Actual 1,080 Budget 600 Variance 480 F $ 8,900 12,230 $ 9,000 8,100 $ 100 F 2,650 1,200 4,130 U 1,450 U 4 600 24,380 300 300 U 18,600 5,780 U 19,500 4,800 19,500 3,500 1,300 U 1,950 1,950 770 27,020 $51,400 600 25,550 $44,150 170 U 1,470 U $7,250 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 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 Variable costs Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Actual Cost Formula (Per unit) 1080 Spending or Budget Variance. Activity-Level (units) Flexible Budget Static Budget + 1080 600