problem 22-3A (part 1 cwel submission) Ratdhet Company uses budgets in cantralling costs. The August 2017 budget report for the company's Assembling Department is as follaws RATCHET COMPANY Dudget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorabk nor Unfavorable Manufacturing Custs Budet Actual Variable costs Direct materials $53,680 $52,680 $1,000 Favorable Direct labor Indirect materials 28,0D 28,100 10Unfavorabla Indirect labor Utilities 54,900 52,100 2,800 Favorable 19,520 19,060 4Faorable 15,250 15,060 190 Favorable -12,200 12.300 100 unfavorable Total variable -163,610 179,360 4,250 Favorable Fixed costs 12,600 12,600 -0- Neither Favorable nor Unfavorable 16,600 16,600 0- Neither Favorable nor Unfavorable 7,000 7,000 -0- Neither Favarable nor Unfavorable 39,000 39,000-Neither Favurable nor Unfavorable Rent Depreciation Tatal fixed Total costs $222.610 218.360 250 Favorable The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 units per year, The Assembling Department manager is pleased with the report and expedts a raise, or at least praise for a job well done. The company president, however, is unhappy with the esults for August because ony 5900 units were produced