MONTY COMPANY Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Budget Actual Variable costs Direct materials $55,040 $53,940 $1,100 Favorable Direct labor 62,720 59,320 3,400 Favorable Indirect materials 30,720 30,820 100 Unfavorable Indirect labor 21,760 21,260 500 Favorable Utilities 16,000 15,890 110 Favorable Maintenance 11,520 11,650 130 Unfavorable Total variable 197,760 192,880 4,880 Favorable Fixed costs Rent 11,300 11,300 -O- Neither Favorable nor Unfavorable Supervision 17,900 17,900 -0- Neither Favorable nor Unfavorable Depreciation 5,000 5,000 -O- Neither Favorable nor Unfavorable Total fixed 34,200 34,200 -O- Neither Favorable nor Unfavorable Total fixed 34,200 34,200 -O- Neither Favorable nor Unfavorable Total costs $231,960 $227,080 $4,880 Favorable he monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 units per ear. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The ompany president, however, is unhappy with the results for August because only 62,000 units were produced. a) & (b) (a) State the total monthly budgeted cost equation. (Round cost per unit to 2 decimal places, eg. 1.25.) The equation is fixed costs $ + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) MONTY COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 D F Ur Neith Budget Actual Costs nor