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 Manufacturing Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Variable costs Direct materials Direct labor $48,000 $47,000 $1,000 Favorable 54,000 51,200 2,800 Favorable Indirect materials 24,000 24,200 200 Unfavorable Indirect labor 18,000 17,500 500 Favorable Utilities 15,000 14,900 100 Favorable Maintenance 12,000 12,400 400 Unfavorable Total variable 171,000 167,200 3,800 Favorable Fixed costs Rent 12,000 12,000 -0- Neither Favorable nor Unfavorable Supervision 17,000 17,000 -0- Neither Favorable nor Unfavorable Depreciation 6000 6000 0