P23.3 (LO 1, 2), AN Ratchet Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Manufacturing Costs Variable costs Direct materials Budget Actual Favorable F Unfavorable U $ 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 Supervision 17,000 17,000 Depreciation. 6,000 6,000 Total fixed 35,000 35.000 Total costs $206,000 $202,200 44443 $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 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 58,000 units were produced. Instructions a) State the total monthly budgeted cost equation.