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 Matolka Harine Cost Control Report For the Honth Ended August 31 Actual Units Produced Variable costs 880 Budget 550 Variance 330 F Marine supplies Emmission tests $8,950 10,438 Other Variable 2,190 $ 8,250 7,700 1,100 $ 700 U 2,730 U 1,090 U Administrative supplies 570 220 350 U Total variable cost. 22,140 12,270 14,570 u Fixed costs Staff salaries Equipment depreciation Rent Utilities 16,500 16,500 4,500 3,350 1,150 0 1,650 1,050 740 Total fixed cost Total cost 23,398 $45,530 585 22,085 $39,355 1550 1,305 U $6,175 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 Cost Formule (Per unit) 880 Spending or Budget Variance Flexible Budget Static Budget Activity-Level (units) 100 550 Variable costs Marine supplies S 10 17 S Emmission tests 11.85 8.950 10,430 E S 6250 7.700