prepare a budget report for august using flexible budget data. why does this report provide a better basis for evaluating preformance than the report based on static budget data? ( budget $200,300 )

Ratchet Company Budget Report For the Month Ended August 31, 2020 Difference Favorable F Manufacturing Costs Budget Atual Unfavorable U Variable costs Direct materials 48,000 $47,000 $1,000 F Direct labor 54,000 51,200 2,800 F 24,000 24,200 200 U 18,000 17,500 500 F 5,000 14,900 100 F 12,000 12,400400 U Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent 171,000 167.200 3800 F 2,000 12,000 0 17,000 17,000 0 6.000 6000 Depreciation Total fixed Total costs -35,000 35,000 + 206,000 $202,200 $3,800 F 720,000 units per year. The Assembling Department manager is pleased The monthly budget amounts in the report were based on an expected production of 60,000 units per month or with the report and expects a raise, or at least praise for produced i a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were PART Anee ES