Problem 22-3A (Part Level Submission) Ratchet Company uses budgets in controling costs. The August 2017 budget report for the compabling Department is as follows. RATCHFT COMPANY Budget Report For the Month Ended August 31, 2017 Dilference Favorabie Unfavorable Neither Favorable Manufactunng Costs Budget Actual Variable costs )rct materials $53,DHOS52,6BD$1,000 Favorable Direct lahor Indirect materls 28,060 28,160 100 Unfavorable Indirect labor Utiities 54,900 52,100 2,800 Favorable 19,520 19,060 460 Favorable 15,250 15,060 190 Favorable 12,200 12,300 100 Unfaverable Total variable 133,610 179,360 4,250 Favorable Fixed costs Rent 12,600 12,600 0 Neither Favorable nor Unfavorable 18,600 1,600-0- Neither Favorable nor Untavorable 7,900 7,800 -0 Neither Favorable nor Unfavarable 39,000 39,000 0 Neither Favorable nor Unfavorable Total fixed Total costs $222,610 $218,360 4,250 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 expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August hecause only 59,0DD units were praduced