Question 4 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 For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Ma Variable costs Costs Budget Actual Direct materials $53,760 S52,760 $1,000 Favorable 61,440 58,240 3,200 Favorable Direct labor Indirect materials Indirect labor Utilities 29,440 29,640 200 Unfavorable 21,760 21,310 450 Favorable 22,400 22,200 200 Favorable 11,52011,780260 Unfavorable Total variable 200,320_195,930_4.390 Favorable Fixed costs Rent 10,800 10,800 0-Neither Favorable nor Unfavorable 18,600 18,600 0-Neither Favorable nor Unfavorable 5,500 5,500 0- Neither Favorable nor Unfavorable 34,900 34,900 0-Neither Favorable nor Unfavorable Supervision Total fixed $235,220 s230,830 $4390 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is -s + variable costs of $ per unit