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 nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $51,200 $50,200 $1,000 Favorable Direct labor 57,600 54,200 3,400 Favorable Indirect materials 26,980 100 Unfavorable 26,880 Indirect labor 19,200 460 Favorable 18,740 Utilities Maintenance 16.000 170 Favorable 15,830 11,520 11,780 260 Unfavorable 182,400 177,730 4,670 Favorable Total variable Fixed costs Rent 11,200 11,200 -0- Neither Favorable nor Unfavorable 18,300 18.300 Supervision -0-Neither Favorable nor Unfavorable 0- Neither Favorable nor Unfavorable Depreclation 7,400 7,400 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. In September, 68,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fxed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Favorable Unfavorabl Neither Favor Budget Actual Costs Unfavora nor