Ratchet Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable F Manufacturing Costs Budget Actual Unfavorable U Variable costs Direct materials $48,000 $47,000 $1,000 F Direct labor 54,000 51,200 2,800 F Indirect materials 24,000 24,200 200 U Indirect labor 18,000 17,500 500 F Utilities 15,000 14,900 100 F Maintenance 12,000 12,400 400 U Total variable 171,000 167,200 3,800 F Fixed costs Rent 12,000 12,000 -0- Supervision 17.000 17,000 -0- Depreciation 6.000 6.000 -0- Total fixed 35,000 35,000 -0-