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	$54,180	$53,080	$1,100	Favorable
Direct labor	60,480	57,080	3,400	Favorable
Indirect materials	30,240	30,440	200	Unfavorable
Indirect labor	21,420	21,020	400	Favorable
Utilities	18,900	18,800	100	Favorable
Maintenance	10,080	10,440	360	Unfavorable
Total variable	195,300	190,860	4,440	Favorable
Fixed costs
Rent	11,100	11,100	0	Neither Favorable nor Unfavorable
Supervision	16,000	16,000	0	Neither Favorable nor Unfavorable
Depreciation	6,800	6,800	0	Neither Favorable nor Unfavorable
Total fixed	33,900	33,900	0	Neither Favorable nor Unfavorable
Total costs	$229,200	$224,760	$4,440	Favorable

The monthly budget amounts in the report were based on an expected production of 63,000 units per month or 756,000 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 61,000 units were produced.

c.) In September, 67,000 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.)