Matoika Marine Inc. hasjust 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 Budget Variance Units Produced 780 600 180 F Variable costs: Marine supplies $ 9,550 $ 7,500 $ 2,050 U Emmission tests 6,780 6,300 480 U Other Variable 1,540 1,350 190 U Administrative supplies 440 240 200 U Total variable cost 18,310 15,390 2,920 U Fixed costs: Staff salaries 14,000 14,000 Equipment depreciation 3,200 2,700 500 U Rent 1,400 1,406 Utilities 610 520 90 U Total Fixed cost 19,210 18,620 590 U Total cost $37,520 $34,016 $ 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 classied 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: ____ Statisaiaries ____ Equipment depreciation ____ Rent ____ Utilities ____ Total xed cost -_-_ Total cost __