Problem 23-03A a, b1, c Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labor 57,820 54,520 3,300 Favorable Indirect materials 26,060 100 Unfavorable 25,960 Indirect labor 450 Favorable 21,240 20,790 140 Favorable Utilities 20,650 20,510 Maintenance 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs -0- Neither Favorable nor Unfavorable Rent 12,100 12,100 -0- Neither Favorable nor Unfavorable Supervision 19,000 19,000 -0- Neither Favorable nor Unfavorable Depreciation 7,300 7,300 38,400 Total fixed 38,400 -0- Neither Favorable nor Unfavorable $219,530 $214,750 $4,780 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 57,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is 2$ + 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, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs Budget 24 %24 In September, 63,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed 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, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $1 Open Show Work Click if you would like to Show Work for this