Problem 24-3A Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the companys Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Manufacturing Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Variable costs Direct materials $51,240 $50,140 $1,100 Favorable Direct labor 59,780 56,580 3,200 Favorable Indirect materials 25,620 25,820 200 Unfavorable Indirect labor 21,960 21,560 400 Favorable Utilities 18,300 18,170 130 Favorable Maintenance 6,100 6,450 350 Unfavorable Total variable 183,000 178,720 4,280 Favorable Fixed costs Rent 10,100 10,100 0 Neither Favorable nor Unfavorable Supervision 18,000 18,000 0 Neither Favorable nor Unfavorable Depreciation 6,200 6,200 0 Neither Favorable nor Unfavorable Total fixed 34,300 34,300 0 Neither Favorable nor Unfavorable Total costs $217,300 $213,020 $4,280 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 because only 59,000 units were produced. Partially correct answer. Your answer is partially correct. Try again. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is = $Entry field with correct answer 34,300 + variable costs of $Entry field with incorrect answer now contains modified data 2.91 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 Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable Entry field with correct answer Entry field with correct answer 59,000 Entry field with correct answer 59,000 Entry field with correct answer Entry field with correct answer $Entry field with incorrect answer 51,240 $Entry field with correct answer 50,140 $Entry field with incorrect answer 1,100 Entry field with incorrect answer now contains modified data Entry field with correct answer Entry field with incorrect answer 59,780 Entry field with correct answer 56,580 Entry field with incorrect answer 3,200 Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 25,620 Entry field with correct answer 25,820 Entry field with incorrect answer 200 Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 21,960 Entry field with correct answer 21,560 Entry field with incorrect answer 400 Entry field with incorrect answer now contains modified data Entry field with correct answer Entry field with incorrect answer 18,300 Entry field with correct answer 18,170 Entry field with incorrect answer 130 Entry field with incorrect answer now contains modified data Entry field with correct answer Entry field with incorrect answer 6,100 Entry field with correct answer 6,450 Entry field with incorrect answer 350 Entry field with correct answer Entry field with correct answer Entry field with incorrect answer 217,300 Entry field with incorrect answer 213,020 Entry field with incorrect answer $4,280 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 10,100 Entry field with incorrect answer now contains modified data 10,100 Entry field with incorrect answer now contains modified data 0 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 18,000 Entry field with incorrect answer now contains modified data 18,000 Entry field with incorrect answer now contains modified data 0 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 6,200 Entry field with incorrect answer now contains modified data 6,200 Entry field with incorrect answer now contains modified data 0 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 34,300 Entry field with incorrect answer now contains modified data 34,300 Entry field with correct answer Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data $Entry field with incorrect answer $Entry field with incorrect answer $Entry field with incorrect answer Entry field with incorrect answer LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. In September, 65,000 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.) 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