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	$53,680	$52,580	$1,100	Favorable
Direct labor	59,780	56,480	3,300	Favorable
Indirect materials	29,280	29,380	100	Unfavorable
Indirect labor	19,520	19,060	460	Favorable
Utilities	15,250	15,140	110	Favorable
Maintenance	12,200	12,530	330	Unfavorable
Total variable	189,710	185,170	4,540	Favorable
Fixed costs
Rent	11,700	11,700	0	Neither Favorable nor Unfavorable
Supervision	18,500	18,500	0	Neither Favorable nor Unfavorable
Depreciation	7,300	7,300	0	Neither Favorable nor Unfavorable
Total fixed	37,500	37,500	0	Neither Favorable nor Unfavorable
Total costs	$227,210	$222,670	$4,540	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.)