nung, le Help System Announcements TENT RESOURCES ab Assignment CALCULATOR PRINTER VERSION Problem 23-03A a, bi, Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. BACK NEXT ise 22-05 ise 22-09 Lem 23-01A a-b ler 23-03A a, bid RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Score Results by Study ive Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $54,600 $53,500 $1,100 Favorable Direct labor 63,700 60,600 3,100 Favorable Indirect materials 31,200 31,400 200 Unfavorable Indirect labor 19,500 19,100 400 Favorable Utilities 19,500 19,370 130 Favorable Maintenance 7,800 8,010 210 Unfavorable Total variable 196,300 191,980 4,320 Favorable Fixed costs Rent 10,900 10,900 -0-Neither Favorable nor Unfavorable Supervision 17,800 17,800 -0- Neither Favorable nor Unfavorable Depreciation 7,000 7,000 -0-Neither Favorable nor Unfavorable Total fixed 35,700 35,700 -0- Neither Favorable nor Unfavorable Total costs $232,000 $227,680 $4,320 Favorable The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 63,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is 35700 + variable costs of $ 3.02 per unit (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 (6) Prepare a budget report for August using flexible budget data. (list variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 63000 63000 Variable Costs Direct Materials 0.84 52920 580 Unfavorable $ $ Direct Labor 0.98 61740 1140 Favorable Indirect Materials 0.48 30240 1160 Unfavorable Indirect Labor 0.30 18900 200 Unfavorable Utilities 0.30 18900 > $ LINK TO TEXT CAA to search O E VANE ION