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. Units Produced Matoika Marine Cost Control Report For the Month Ended August 31 Actual 1,050 Variable costs: Marine supplies Emmission tests Other Variable Administrative supplies. Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Budget 700 Variance 350 F $ 8,800 8,530 $ 7,000 $1,800 U 7,350 1,180 U 2,040 1,400 640 U 540 350 19,910 16,100 190 U 3,810 U 13,500. 13,500 4,200 3,200 1,000 U 1,350 1,350 710 19,760 $39,670 570 18,620 $34,720 140 U 1,140 U $4,950 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 then overhead, the flexible budget opproach 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 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 performances 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 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 Actual Cost Formula (Per unit) 1050 Spending or Budget Variance Activity-Level (units) Flexible Budget Static Budget 1050 700