Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $49,600 $48,500 $1,100 Favorable Direct labor 57,040 54,040 3,000 Favorable Indirect materials 27.280 27,580 300 Unfavorable Indirect labor 22,320 21.910 410 Favorable Utilities 15,500 15,390 110 Favorable Maintenance 7,440 7,630 190 Unfavorable Total variable 179.180 175,050 4,130 Favorable Fixed costs Rent 11.500 11,500 -0. Neither Favorable nor Unfavorable Supervision 17.100 17.100 -0- Neither Favorable nor Unfavorable Depreciation 7.100 7.100 -O- Neither Favorable nor Unfavorable Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $49,600 $48,500 $1,100 Favorable Direct labor 57,040 54,040 3,000 Favorable Indirect materials 27.280 27,580 300 Unfavorable Indirect labor 22,320 21,910 410 Favorable Utilities 15,500 15,390 110 Favorable Maintenance 7.440 7,630 190 Unfavorable Total variable 179,180 175,050 4,130 Favorable Fixed costs Rent 11.500 11,500 -O- Neither Favorable nor Unfavorable Supervision 17,100 17,100 -0. Neither Favorable nor Unfavorable Depreciation 7.100 7.100 -0- Neither Favorable nor Unfavorable Total fixed 35,700 35.700 -0- Neither Favorable nor Unfavorable Total costs $214,880 $210,750 $4,130 Favorable The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced. (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 Ne Budget Actual Costs nc Units 66000 66000 Variable Costs Direct Materials 49600 $ 48500 550 For the Month Ended August 31, 2020 Nei no Budget Actual Costs 66000 Units 66000 Variable Costs 4850d 550 49600 Direct Materials 60720 Direct Labor 59444 1276 Indirect Materials 29040 30338 1298 23760 Indirect Materials 24101 341 Utilities 16500 16929 429 Maintenance 7920 8393 473 Total Variable Costs 190740 192555 1815 Fixed Costs Rent 11500 i 11500