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 $50,020 $48,920 $1,100 Favorable Direct labor 59,780 56,480 3,300 Favorable Indirect materials 24,400 24,700 300 Unfavorable Indirect labor 20,740 20,340 400 Favorable Utilities 15,250 15,130 120 Favorable Maintenance 7,320 7,610 290 Unfavorable Total variable 177,510 173,180 4,330 Favorable Fixed costs Rent 12,900 12,900 -- Neither Favorable nor Unfavorable Supervision 17,500 17,500 -O-Neither Favorable nor Unfavorable Depreciation 7,500 7,500 -0- Neither Favorable nor Unfavorable Total fixed 37,900 37,900 -O-Neither Favorable nor Unfavorable Total costs $215,410 $211,080 $4,330 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. (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 Budget Actual Costs Depreciation Direct Labor Direct Materials Fixed Costs Indirect Labor Indirect Materials Maintenance Rent Supervision Total Costs Total Fixed Costs Total Variable Costs Units Utilities Variable Costs Unfavorable Neither Favorable nor Unfavorable Favorable