Sandhill Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Sandhill Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Actual Manufacturing Costs Budget Variable costs Direct materials $55,040 Direct labor 62,720 Indirect materials 30,720 $53,940 $1,100 Favorable 59,320 3.400 Favorable 30.820 100 Unfavorable Indirect labor 21,760 21.260 500 Favorable Utilities 16,000 15,890 110 Favorable Maintenance 11,520 11.650 130 Unfavorable Total variable 197,760 192,880 4,880 Favorable Fixed costs Rent 11,300 11.300 Supervision 17.900 17.900 -0- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -O- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation 5,000 5,000 Total fixed 34,200 34,200 Total costs $231,960 $227,080 $4,880 Favorable The monthly budget amounts in the report were based on an expected production of 64.000 units per month or 768,000 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 62,000 units were produced. In September, 68,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) SANDHILL COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2022 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs les