Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Pharoah Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $53,690 $52,690 $1,000 Favorable Direct labor 54,900 52,100 2,800 Favorable Indirect materials 28,060 28,160 100 Unfavorable Indirect labor 19,520 19,060 460 Favorable Utilities 15,250 15,060 190 Favorable Maintenance 12,200 12,300 100 Unfavorable Total variable 183,610 179,360 4,250 Favorable Fixed costs Rent 12,600 12,600 Supervision 18,600 18,600 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation 7,800 7,800 -0- Neither Favorable nor Unfavorable Total fixed 39,000 39,000 -0- Neither Favorable nor Unfavorable Total costs $222,610 $219,360 $4,250 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.