please see attached for the assignment. the instructions are included

454 (Adapted from P10-3A) Ratchet Company uses budgets in controlling costs. The Aug budget report for the company's Assembling Department is as follows. Ratchet Company Budget Report Assembling Department For the month ended August 31, 2017 Manufacturing Costs Variable costs: Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable costs Fixed costs: Rent Supervision Depreciation Total fixed costs Total costs Budget Actual Difference $93,400 99,400 69,400 63,400 60,400 57,400 443,400 $92,400 96,600 69,600 62,900 60,300 57,800 439,600 $1,000 2,800 200 500 100 400 3,800 57,400 62,400 51,400 171,200 $614,600 57,400 62,400 51,400 171,200 $610,800 0 0 0 0 $3,800 The monthly budget amounts in the report were based on the following: Expected production: 554,000 units per month Actual production: 549,000 units per month The Assembling Department manager is pleased with the report and expects a raise, o job well done. The company president, however, is unhappy with the results for August being lower than expected. a. State the total monthly budgeted cost formula. Total fixed cost of: + variable cost per unit of: b. Prepare a budget report for August using flexible budget data. Manufacturing Costs Variable costs: Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable costs Fixed costs: Rent Supervision Depreciation Total fixed costs Total costs Budget Actual Difference c. Why does a flexible budget report like that prepared in part (b) provide a better ba evaluating performance than the report based on static budget data? d. In September, actual production results were the following: Actual production in September: 604,130 units per month Prepare the budget report using flexible budget data, assuming (1) each variable 10% higher than its actual cost in August, and (2) fixed costs were the same in Se as in August. Manufacturing Costs Budget Actual Difference Variable costs: Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable costs Fixed costs: Rent Supervision Depreciation Total fixed costs Total costs lling costs. The August 2017 ows. 017 Favorable (F) or Unfavorable (U)? F F U F F U F F nd expects a raise, or at least praise for a he results for August due to production . Favorable (F) or Unfavorable (U)? ) provide a better basis for et data? per month ng (1) each variable cost was were the same in September Favorable (F) or Unfavorable (U)? The cells in blue are to be replaced with formulas or links (aka cell references) that produce the answers to the questions. The only exception to this is part (c), the 10% in part (d) and the Favorable/Unfavorable column (see more under the notes below). Use the ABS function in the Difference column of parts (b) and (d). Notes: *I entered the 10% increase in one cell and linked back to that cell rather than entering the sam number six times. You can try the IF statement or input F's and U's. The amounts in Rows 52, 64, 87 and 99 are the only ones that need $ signs. They are preformatted as currency in the spreadsheet. Underlines are also pre-formatted for the subtotal and total cells. FYI: If you copy and paste ov a cell, the formatting copies also