Problem 10-3A (Part Level Submission Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference ble Unfavorable Neither Fa Manufacturing costs Budget Actual nor Unfavorable Variable costs Direc aterial $50,740 $49,740 $1,000 Fa vorable Direct labor 54,280 1,480 2,800 Fa vorable Unfavorable ndirect materials 25,960 26 260 300 ndirect labor 22,420 21,940 80 Favorable Utilities 4,750 4,580 170 Favorable Maintenance S 900 6,120 220 ble Total variable 174.050 170,12 0 3,930 Fa vorable Fixed costs Rent 10,000 0,000 ble Unfa 18,200 18,200 Neither F nor Unfavorable Depreciation 5.200 5,2 00 Neither Favorable no Unfavorable Total fixed 33,400 33,400 Neither Favorable nor Unfavorable S207 450 S203 520 $3,930Fa otal costs vorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well dent, ho unhappy with the results for August because only 57,000 done, The Company pres units were produce