Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the companys Assembling Department is as follows.

RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020
			Difference
Manufacturing Costs	Budget	Actual	Favorable Unfavorable Neither Favorable nor Unfavorable
Variable costs
Direct materials	$53,760	$52,760	$1,000	Favorable
Direct labor	61,440	58,240	3,200	Favorable
Indirect materials	29,440	29,640	200	Unfavorable
Indirect labor	21,760	21,310	450	Favorable
Utilities	22,400	22,200	200	Favorable
Maintenance	11,520	11,780	260	Unfavorable
Total variable	200,320	195,930	4,390	Favorable
Fixed costs
Rent	10,800	10,800	0	Neither Favorable nor Unfavorable
Supervision	18,600	18,600	0	Neither Favorable nor Unfavorable
Depreciation	5,500	5,500	0	Neither Favorable nor Unfavorable
Total fixed	34,900	34,900	0	Neither Favorable nor Unfavorable
Total costs	$235,220	$230,830	$4,390	Favorable

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.

(b) 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.