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 $51,200 $50,200 $1,000 Favorable Direct materials Direct labor 57,600 54,200 3,400 Favorable Indirect mateijals 26,880 26,980 100 Unfavorable Indirect labor 19,200 18,740 460 Favorable Utilities 16,000 15,830 170 Favorable Maintenance 260 Unfavorable 182,400 177,730 4,670 Favorable 11,520 11,780 Total variable Fixed costs Rent 11,200 11,200 -0- Neither Favorable nor Unfavorable Supervision 18,300 18,300 0- Neither Favorable nor Unfavorable Depreciation 7,400 7,400 -0- Neither Favorable nor Unfavorable Total fixed 36,900 36,900 0- Neither Favorable nor Unfavorable $219,300 $214,630 $4,670 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. Ado laye (a)&(b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, es. 1.25.) - $ +variable costs of $ per unit The formula is Prepare a DuagetreportrTor August using Tiexibie buaget data. (LISt Variable costs berore xea coSts. RATCHET COMPANY Ado Playe Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Coogle Favorable Unfavorable Neither Favorabl nor Unfavorable Budget Actual Costs $