Problem 22-3A (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 Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor Indirect materials Indirect labor $47,200 $46,200 $1,000 Favorable 53,100 50,500 2,600 Favorable 23,600 23,700 100 Unfavorable 17,700 17,300 400 Favorable 14,750 14,650 100 Favorable 5,900 6,000 100 Unfavorable 162,250 158,350 3,900 Favorable Utilities Maintenance Total variable Fixed costs Rent Supervision 10,000 16,000 5,000 31,000 10,000 16,000 5,000 31,000 -- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -- Neither Favorable nor Unfavorable Depreciation Total fixed Total costs $193,250 $189,350 $3,900 Favorable 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 done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is = $ + variable costs of $ per unit. (6) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Click if you would like to Show Work for this question: Open Show Work