Question 2 of 2 - / 10 E 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 Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $51.200 $50,200 $1,000 Favorable Direct labor 57,600 54,200 3,400 Favorable Indirect materials 26,880 26,980 100 Unfavorable Indirect labor 19 200 18,740 460 Favorable Question 2 of 2