Matorka 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 Cost Conftel Report For The Parth Todd get S Units Produced Variable costs 715 550 165 F Marine supplies $9,700 17,700 $3,000 U Imission tests 7.300 6,600 Other Variable 1,640 1,100 540 U Administrative supplies 400 Total variable cost 19,180 De 15-730 IMU 3,450 U Fixed costs Staff salaries Equipment depreciation Rent Utilities Total fixed cost 16,000 16,000 3,400 2,000 1,000 1,600 Total cost 630 21,650 $40,830 100 U 20,950 $36,660 700 U $4,150 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 (ie., zero variance). Round "Cost Formula" answers to 2 decimal places) Vanable costs Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cont Fixed costs Staff salaries Cast Fotroke 215 ATE Spilling to Help Villane Fine Child (GE holy of mind 715 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 2. This part of the question is not part of your Connect assignment. 1 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 715 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 Budget Variance 550 165 F $ 9,700 7,380 $ 7,700 $2,000 U 6,600 780 U 1,640 1,100 540 U 460 330 130 U 19,180 15,730 3,450 U 16,000 16,000. 3,400 2,800 600 U 1,600 1,600 630 530 100 U 21,630 20,938 700 U $40,810 $36,660 $ 4,150 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 Spending or Budget Variance Flexible Budget Static Budget Variable costs: Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Fixed costs Staff salaries Equipment depreciation. Rent Utilities Cost Formula (Per unit) 715 Activity Level (units) 715 550 Total variable cost Fixed costs: Staff salaries Equipment depreciation Rent Utilities Total fixed cost Total cost