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 nor Unfavorable Manufacturing Costs Budget Actual Variable costs $51,200 $50,200 $1,000 Favorable Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance 57,600 54,200 3,400 Favorable 26,880 26,980 100 Unfavorable 19,200 18,740 460 Favorable 16,000 15,830 170 Favorable 11,520 11,780 260 Unfavorable 182,400 177,730 4,670 Favorable Total variable Fixed costs Rent Supervision Depreciation 11,200 11,200 -0- Neither Favorable nor Unfavorable 18,300 18,300 0- Neither Favorable nor Unfavorable 7,400 7,400 -0- Neither Favorable nor Unfavorable 36,900 36,900 -0- Neither Favorable nor Unfavorable Total fixed $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. (a) & (b) (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) variable costs of $ $ per unit. The formula is RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs