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	$47,200	$46,200	$1,000	Favorable
Direct labor	53,100	50,500	2,600	Favorable
Indirect materials	23,600	23,700	100	Unfavorable
Indirect labor	17,700	17,300	400	Favorable
Utilities	14,750	14,650	100	Favorable
Maintenance	5,900	6,000	100	Unfavorable
Total variable	162,250	158,350	3,900	Favorable
Fixed costs
Rent	10,000	10,000	0	Neither Favorable nor Unfavorable
Supervision	16,000	16,000	0	Neither Favorable nor Unfavorable
Depreciation	5,000	5,000	0	Neither Favorable nor Unfavorable
Total fixed	31,000	31,000	0	Neither Favorable nor Unfavorable
Total costs	$193,250	$189,350	$3,900	Favorable

The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 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 57,000 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.)

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.)