nula, and ts for P23.3A (LO 1, 2), AN Ratchet Company uses budgets in controlling costs. The August amb b. Prepare a budget report for August using flexible budget data. Why does this report provide a lente c. In September, 64,000 units were produced. Prepare the budget report using flexible budget assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) Writing Clarke Inc. operates the Patio Furniture Division as a profit center report for the company's Assembling Department is as follows. Excel Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Manufacturing Costs Budget Actual Unfavorable U Variable costs Direct materials $ 48,000 $ 47,000 $1.000 F Direct labor 54,000 51,200 2,800 F Indirect materials 24,000 24,200 200 U Indirect labor 18,000 17.500 500 F Utilities 15,000 14,900 100 F Maintenance 12,000 12,400 400 U Total variable 171,000 167,200 3.800 F Fixed costs Rent 12,000 12,000 -0- Supervision 17,000 17,000 -0- Depreciation 6,000 6,000 Total fixed 35,000 35,000 -0- Total costs $206,000 $202,200 $3,800 F The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report as expects a raise, or at least praise for a job well done. The company president, however, is unhappy the results for August because only 58,000 units were produced. Instructions a. State the total monthly budgeted cost formula. basis for evaluating performance than the report based on static budget data? were the same in September as in August