Ratchet Company uses budgets in controlling costs. The August 2020 budget report 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 nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $50,840 $49,840 $1,000 Favorable Direct labor 55,800 52.500 3,300 Favorable Indirect materials 27.280 27,480 200 Unfavorable. Indirect labor 18,600 18,180 420 Favorable Utilities 18,600 18.460 140 Favorable Maintenance 9,920 10,220 300 Unfavorable Total variable 181040 176.680 4.360 Favorable Fixed costs Totar variable 181,040 176,680 Fixed costs Rent 11,700 11,700 Supervision 18,600 18,600 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation 7,700 7,700 -0- Neither Favorable nor Unfavorable Total fixed 38,000 38.000 Total costs -0- Neither Favorable nor Unfavorable $219.040 $214.680 $4,360 Favorable The monthly budget amounts in the report were based on an expected production of 62,000 units per month or 744,000 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 60,000 units were produced. (a) & (b) Your answer is partially correct (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 5 per unit Direct Materials Direct Labor Indirect Materials Indirect Labor Utilities Maintenance a Total Variable Costs 4 Fixed Costs RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 D Fa Unt Neithe Budget Actual Costs nor U Utilities Maintenance Total Variable Costs + Fixed Costs Fixed Costs Depreciation Total Fixed Costs Total Costs