Problem 25-03A a, b1, c (Video) Bonita Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. BONITA COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $53,680 $52,680 $1,000 Favorable Direct labor 54,900 52,100 2,800 Favorable Indirect materials 28,060 28,160 100 Unfavorable Indirect labor 19,520 19,060 460 Favorable Utilities 15,250 15,060 190 Favorable Maintenance 12,200 12,300 100 Unfavorable Total variable 183,610 179,360 4,250 Favorable Fixed costs Rent 12,600 12,600 -0- Neither Favorable nor Unfavorable Supervision 18,600 18,600 -0- Neither Favorable nor Unfavorable Depreciation 7,800 7,800 -0-Neither Favorable nor Unfavorable Total fixed 39,000 39,000 -0- Neither Favorable nor Unfavorable 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 because only 59,000 units were produced. Your answer is correct. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is The formula is 39000 variable costs o 39000 variable costs of $1 3.01 per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs T Units 59000 59000 T Variable Costs | Direct Materials 51920 53100 52680 52100 7601 unfavo Unfavorable 1000 Favo I rable T Indirect Materials 271401 28160 T Unfavorable T Indirect Labor 18880 T 190601 nfavorable T Utilities 14750 15060 310 Unfavorable Unfavorable T Maintenance 11800T 12300 vorable > T Total Variable Costs | 177590 179360 179360 1770 unfavorable Unfavorable Fixed Costs Rent 12600 12600 Neither Favorable nor Unfavorable T Supervision 18600 18600 Neither Favorable nor Unfavorable Depreciation T 7 800 7800 Neither Favorable nor Unfavorable T Total Fixed Costs 39000 39000 Neither Favorable nor Unfavorable * Total Costs Total Costs 216590 216500 2 18360 218360 1704 Unfavo IT Unfavorable 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.) BONITA COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs (x- DDDDDD DODO DDDDDDDDD