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 Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $51,600 $50,600 $1.000 Favorable Direct labor 56,400 53,600 2,800 Favorable Indirect materials 28,800 29.000 200 Unfavorable Indirect labor 22,800 22,380 420 Favorable Utilities 15,000 14,860 140 Favorable Maintenance 8,400 8.740 340 Unfavorable Total variable 183,000 179 180 3.820 Favorable Fixed costs Rent Supervision Depreciation 12.200 12.200 -0- Neither Favorable nor Unfavorable 16,900 16,900 -O- Neither Favorable nor Unfavorable 7,700 7,700 -0- Neither Favorable nor Unfavorable 36,800 36,800 -O- Neither Favorable nor Unfavorable $219,800 $215,980 $3.820 Favorable Total fixed Total costs The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 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 58,000 units were produced. RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Budget Actual Costs Units 64000 64000 Variable Costs Direct Materials $ 55040 $ 55660 $ Direct Labor 60160 58960 10000 Indirect Materials 30720 31900 Indirect Labor 24320 24618 Utilities 16000 16346 Maintenance 8960 9614 Total Variable Costs V 195200 197098 Fixed Costs Rent 12220 12200 Supervision 16900 i 16900 i Depreciation 7700 7700 Total Flxed Costs 36800 i 36800 Total Costs $ 232000 $ 233898 (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 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs 64000 64000 55040 $ 55660 $ 620 Unfavorable 60160 58960 1200 Favorable 30720 31900 1180 Unfavorable 24320 24618 298 Unfavorable 16000 16346 346 Unfavorable 8960 9614 654 Unfavorable dogod 10. 000000 195200 197098 1898 Unfavorable 12220 12200 Nelther Favorable nor Unfavorable .6900 i 16900 1 Nelther Favorable nor Unfavorable 7700 7700 Nelther Favorable nor Unfavorable 16800 36800 Nelther Favorable nor Unfavorable 232000 $ 233898 $ 1898 Unfavorable (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, eg. 1.25.) The formula is $ 183000 + variable costs of $ 3.05 per unit