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	$49,560	$48,460	$1,100	Favorable
Direct labor	54,280	51,380	2,900	Favorable
Indirect materials	28,320	28,420	100	Unfavorable
Indirect labor	18,880	18,420	460	Favorable
Utilities	17,700	17,570	130	Favorable
Maintenance	9,440	9,670	230	Unfavorable
Total variable	178,180	173,920	4,260	Favorable
Fixed costs
Rent	10,000	10,000	0	Neither Favorable nor Unfavorable
Supervision	18,800	18,800	0	Neither Favorable nor Unfavorable
Depreciation	7,400	7,400	0	Neither Favorable nor Unfavorable
Total fixed	36,200	36,200	0	Neither Favorable nor Unfavorable
Total costs	$214,380	$210,120	$4,260	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) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.)

The formula is

$Enter a dollar amount + variable costs of $Enter the variable costs per unit in dollars per unit.

(b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.)