Ratchet Company uses budgets in controlling costs. The August 2020 budget roport 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 Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $56,320 55,320 11.000 Favorable Direct labor 61.440 58,640 2800 Favorable Indirect materials 29440 29.640 200 Unfavorable Indirect labor 21.760 21.330 430 Favorable Utilities 16000 15.900 100 Favorable Maintenance 8960 9,220 260 Unfavorable Total variable 193,920 190050 3.870 Favorable Fbed costs Rent 12,500 12,500 -0. Neither Favorable nor Unfavorable Supervision 17,600 17.600 -0. Neither Favorable nor Unfavorable Depreciation 6.800 6.800 -0. Neither Favorable nor Unfavorable Totalt 36,900 35.900 -0. Neither Fable nor Unfavorable Total costs $230,820 $226,950 $3870 Favorable The monthly budet amounts in the report were based on an expected production of 64000 units per month or 768.000 units per ytar The Assembling Department manager is pleased with the report and expects acissor at least prate for a job well done. The company president, however, is unhappy with the results for August because only 62.000 units were produced Flexible Budget Report For the Month Ended September 30, 2020 Difference Favorable Unfavorable Neither Favor por Unfavorab Bukiet Actul Costs 5