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 Actual Manufacturing Costs Budget Variable costs Direct materials $53,760 $52,760 $1,000 Favorable Direct labor 62,720 59,620 3,100 Favorable Indirect materials 25,600 25,800 200 Unfavorable 20,480 20,020 460 Favorable Indirect labor Utilities 22,400 22,280 120 Favorable Maintenance 12,800 13,180 380 Unfavorable Total variable 197,760 193,660 4,100 Favorable Fixed costs Rent 10,800 10,800 Supervision 17,600 17,600 -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation 5,700 5,700 34.100 34,100 Total fixed Total costs $231,860 $227,760 $4,100 Favorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced. (a) & (b) (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 (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 Budget Actual Costs $ $ $ $ $ RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 C F U Neiti nor Budget Actual Costs