Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. The monthly budget amounts in the report were based on an expected production of 65,000 units per month or 780.000 units per year. The Assembling Department manager is pleased with the report and expects a rise, or at least praise for ajot well done. The company president, howerer, is unt appy with the results for. August because only 63 . Doo units were produced (a) State the total monthly budgeted cost fornwila, (flound cost per init to 2 decimal ploces, es. 1.25.) The formula is + variable costs of 5 per unit. (b) Frepare a budget report lor August using flexible budget data. (thist variable costs before fund conts) Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable 5 5 5 In September, 69,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in Au costs were the same in September as in August. (List variable costs before fixed costs.) Difference Favorable Unfavorable Neither Favorable Budget Actual Costs nor Unfavorable 5 5