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 Favorable Unfavorable Neither Favorable nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials Direct labor $51,240 $50,240 $1,000 Favorable 59,780 56,680 3,100 Favorable 25,620 25,920 300 Unfavorable 19,520 19,090 430 Favorable Indirect materials Indirect labor Utilities Maintenance 15,250 15,080 170 Favorable 12,200 12,400 200 Unfavorable 183,610 179,410 4,200 Favorable Total variable Fixed costs Rent Supervision Depreciation 11,800 11,800 -O- Neither Favorable nor Unfavorable 19.000 19,000 -- Neither Favorable nor Unfavorable 7,500_ 7,500_-O- Neither Favorable nor Unfavorable 38,30038,300_-O- Neither Favorable nor Unfavorable $221,910 $217,710 $4,200 Favorable Total fixed Total costs The monthly budget amounts in the report were based on an expected production of 61,000 units per month or 732,000 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 59,000 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. Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs In September, 65,000 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 fed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Actual Costs