Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the companys Assembling Department is as follows.

Pharoah Company Budget Report Assembling Department For the Month Ended August 31, 2022
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$56,320	$55,320	$1,000	Favorable
Direct labor	61,440	58,640	2,800	Favorable
Indirect materials	29,440	29,640	200	Unfavorable
Indirect labor	21,760	21,330	430	Favorable
Utilities	16,000	15,900	100	Favorable
Maintenance	8,960	9,220	260	Unfavorable
Total variable	193,920	190,050	3,870	Favorable
Fixed costs
Rent	12,500	12,500	0	Neither Favorable nor Unfavorable
Supervision	17,600	17,600	0	Neither Favorable nor Unfavorable
Depreciation	6,800	6,800	0	Neither Favorable nor Unfavorable
Total fixed	36,900	36,900	0	Neither Favorable nor Unfavorable
Total costs	$230,820	$226,950	$3,870	Favorable

The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced.

(a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.)

(b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)

(c) In September, 68,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.)

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 Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $56,320 $55,320 $1,000 Favorable Direct labor 61,440 58,640 2,800 Favorable Indirect materials 29.440 29,640 200 Unfavorable Indirect labor 21,760 21,330 430 Favorable Utilities 16,000 15,900 100 Favorable Maintenance 8,960 9,220 260 Unfavorable Total variable 193,920 190,050 3,870 Favorable Fixed costs Rent 12,500 12,500 -0- Neither Favorable nor Unfavorable Supervision 17,600 17,600 -0- Neither Favorable nor Unfavorable Depreciation 6,800 6,800 -0- Neither Favorable nor Unfavorable Total fixed 36,900 36,900 -O- Neither Favorable nor Unfavorable Total costs $230,820 $226,950 $3,870 Favorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, eg. 1.25.) The formula is $ 36900 + variable costs of $ 3.03 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2022 Ne ni Budget Actual Costs > > $