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 $52,460 $51,460 $1,000 Favorable Direct labor 57,340 53,940 3,400 Favorable Indirect materials 26,840 27.140 300 Unfavorable Indirect labor 18,300 17,890 410 Favorable Utilities 15,250 15.060 190 Favorable Maintenance 6.100 6,350 250 Unfavorable Total variable 176,290 171.840 4,450 Favorable Fixed costs Rent 11.000 11.000 -0- Neither Favorable nor Unfavorable Supervision 18,000 18,000 -0- Neither Favorable nor Unfavorable Depreciation 7,900 7,900 -0- Neither Favorable nor Unfavorable Total fixed 36,900 36,900 -0- Neither Favorable nor Unfavorable Total costs $213,190 $208,740 $4,450 Favorable 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, 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Diff Fav Unfa Neither nor Un Budget Actual Costs $ $ $ $ e Textbook and Media 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 fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Diff Fav Unfa Neither nor Un Budget Actual Costs $ $ $ $ $ $ e Textbook and Media