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Oriole Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Oriole Company Budget Report Assembling

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Oriole Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Oriole Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $52,460 Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor 57.340 $51.460 $1,000 Favorable 53,940 3,400 Favorable 27,140 300 Unfavorable 26,840 18,300 17.890 410 Favorable Utilities 15,250 15,060 190 Favorable Maintenance 6.100 6,350 250 Unfavorable Total variable 176.290 171,840 4,450 Favorable Fixed costs Rent 11,000 11,000 -0. Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable Sunervision 18.000 18,000 Total variable 176.290 171,840 4.450 Favorable Fixed costs Rent Supervision Depreciation Total fixed Total costs 11,000 11,000 -0- Neither Favorable nor Unfavorable 18,000 18,000 -0- Neither Favorable nor Unfavorable 7,900 7.900 -O- Neither Favorable nor Unfavorable 36,900 36,900 -0- Neither Favorable nor Unfavorable $213,190 $208.740 $4.450 Favorable The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 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 59,000 units were produced. Your answer is partially correct. (a) State the total monthly budgeted cost formula.(Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is GA $ 36900 + variable costs of $ 2.89 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) ORIOLE COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Dift Fas Unfa Neithel nor Ur Budget Actual Costs Units Variable Costs 3.347 16 ITE Budget Actual Costs Neither nor Uni Units Variable Costs Direct Materials $ Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent III LE Supervision i Depreciation Maintenance Total Variable Costs Fixed Costs Rent Supervision NIN Depreciation Total Fixed Costs Total Costs Difference Favorable Unfavorable Neither Favorable nor Unfavorable $ Unfavorable Favorable + Unfavorable Unfavorable Unfavorable Unfavorable + Unfavorable

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