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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 Assembling

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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 Assembling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $53,760 $52,760 $1,000 Favorable Direct labor 62,720 59,620 3,100 Favorable Indirect materials 25,600 25,800 200 Unfavorable Indirect labor 20,480 20,020 460 Favorable Utilities 22,400 22,280 120 Favorable Maintenance 12,800 13,180380 Unfavorable Total variable 197,760 193,660 4,100 Favorable Fixed costs Rent 10,800 10,800 -0-Neither Favorable nor Unfavorable Supervision 17,600 17,600 -O- Neither Favorable nor Unfavorable Depreciation 5,700 5,700 -- Neither Favorable nor Unfavorable Total fixed 34,100 34,100 -0-Neither Favorable nor Unfavorable Total costs $231,860 $227,760 $4,100 Favorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 760,000 units per year. The Assembing Department manager is pleased with the report and exp for a job well done. The company president, however, is h y with the results for August because only 62,000 units were produced your answer is partially correct. Try again (a) state the total monthly budgeted cost formule (Round cost per unit to places, L.25.) The formula is 24100 RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Units Variable Costs Direct Materials Unfavorable Direct Labor Favorable Indirect Materials Unfavorable Indirect Labor Unfavorable || Utilities Unfavorable Maintenance Unfavorable Maintenance Unfavorable T Total Variable Costs Unfavorable Fixed Costs Rent Neither Favorable nor Unfavorable JOD JINNI EL | Supervision I Neither Favorable nor Unfavorable Depreciation Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable Total Costs Unfavorable In September, 68,000 units were produced. Prepare the budget report using exible budget data, assuming (1) each variable cont was 10% higher than is actual cost in August, and (2) fed costs were the same in September as in August (List variable costs before fred costs.) RATCHET COMPANY Flexible Budget Report For the Month Ended September 30, 2017 Neither Favorable Direct Materials Untavorable Favorable Direct Labor | Indirect Materials GPS Indirect Labor Tetes Unfavorable ctice Assignmen Gradebook ORION Downloadable eTextbook ment Maintenance Unfavorable Total Variable Costs Unfavorable 92 TFixed Costs Rent IT Neither Favorable nor Unfavorable Supervision XX DOIDO DO IT Neither Favorable nor Unfavorable Depreciation Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable I Total Costs Unfavorable unfavorable Click If you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

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