RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Variable costs et Actual Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance 51,240 59,780 56,680 3,100 Favorable 25,620 19,520 19,090 430 Favorable 15,25015,080 170 Favorable 12,200 12,400 200 Unfavorable 50,240 $1,000 Favorable 25,920 300 Unfavorable Total variable 183,610 179,410 4,200 Favorable Fixed costs Rent Supervision Depreciation 11,800 11,800 0- Neither Favorable nor Unfavorable 19,000 19,000 0-Neither Favorable nor Unfavorable 7,500 7,500 0-Neither Favorable nor Unfavorable 38,300 38,300 0- Neither Favorable nor Unfavorable Total fixed Total costs $221,910 $217.710 $4,200 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) 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 = 383001 3.01