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	$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) & (b)

(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.