prepare a flexible budget for 55,000, 60,000 and 65,000 units.

1. Prepare a flexible budget for 55,000, 60,000, and 65,000 units.

Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Manufacturing Costs Budget Actual Unfavorable U Variable costs Direct materials $ 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 -O- Supervision 17,000 17,000 -O- Depreciation 6,000 6,000 Total fixed 35,000 35,000 Total costs $206.000 $202.200 $3,800 F -O- -O- 3.800 Indirect materials 24,000 24,200 200 U Indirect labor 18,000 17.500 500 F Utilities 15.000 14.900 100 F Maintenance 19.000 12.400 400 U Total variable 171.000 167,200 F Fixed costs Rent 12.000 12.000 Supervision 17.000 17.000 -O- Depreciation 6,000 6.000 -0 Total fixed 35.000 35.000 -O Total costs $206,000 $202,200 SNOOP 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 Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Manufacturing Costs Budget Actual Unfavorable U Variable costs Direct materials $ 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 -O- Supervision 17,000 17,000 -O- Depreciation 6,000 6,000 Total fixed 35,000 35,000 Total costs $206.000 $202.200 $3,800 F -O- -O