Problem 22-3A 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 Mafacturing Costs Budget Actu nor Unfavorable Direct materials Indirect materials Indirect labor Uties Maintenance $52,460 551,460 $1,000 Favorable 57,340 53,940 3,400 Favorable 26,840 27,140 300 Unfavorable 18,300 17,090 410 Favorable 15,250 15,060 190 Favorable 6.100 6,350 250 Unfavorable 176,290 171.840 4.450 Favorable Rent Supervision Depreciation Total foed 11,000 11,000 -- Neither favorable nor Unfavorable 18,000 18,000 -- Neither Favorable nor Unfavorable 7,900 7,900 -- Neither Favorable nor Unfavorable 36,900 36,900 -0-Neither Favorable nor Unfavorable $213,190 $200,740 54,450 favorable Total costs 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 because only 59.000 ts were produced (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. b) 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 STANDARD VIEW PRINTER VERSION BACK NEX In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than is actual cost in August, and (2) feed costs were the same in September as in August. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Favorable Neither Favorable nor Unfavorable