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 Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost Actual 780 Budget 600 Variance 180 F $ 9,550 6,780 $ 7,500 6,300 $2,050 U 480 U 1,540 1,350 190 U 440 240 200 U 18,310 15,390 2,920 U 14,000 14,000 3,200 2,700 500 U 1,400 1,400 610 19,210 $37,520 520 18,620 $34,010 90 U 590 U $ 3,510 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) 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 Matoika Marine Flexible Budget Performance Report For The Month Ended August 31 Actual Cost Formula (Per unit) 780 Spending or Budget Variance Flexible Budget Static Budget Activity-Level (units) 780 600 $ 12.50 $ 9,550 $ 200 F $ 9,750 $ 7,500 10.50 6,780 1,410 F 8,190 6,300 2.25 1,540 215 F 1,755 1,350 0.40 440 128 U 312 240 25.65 $ 18,310 $ 1,697 F $ 20,007 $ 15,390 $ 14,000 $ 0 None 14,000 $ 14,000 3,200 500 U 2,700 2,700 1,400 0 None 1,400 1,400 610 90 U 520 520 19,210 590 U 18,620 18,620 $ 37,520 $ 0 None $ 38,627 $ 34,010