RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs $51.240 56,120 25,620 21.960 21,350 7320 183.610 $50,240 $1,000 Favorable 52.920 3.200 Favorable 25.920 300 Unfavorable 21,560 400 Favorable 21,180 170 Favorable 7.760 440 Unfavorable 179.580 4,030 Favorable 10.600 10,600 -0. Neither Fwvorable nor Unfavorable 18,500 18.500 O Neither Favorable nor Unfavorable 6.900 6.900 0 Neither favorable nor Unfavorable 36,000 36,000 50- Neither Favorable nor Unfavorable $219,610 $215,500 $4,030 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 (a) & (b) (a) State the total monthly budgeted cost formula, (Round cost per unit to 2 decimal places, eg, 1.25.) The formula is $ + 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 Budget Actual Costs C