SARASOTA COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Favorable Manufacturing Costs Budget Actual 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- Supervision 18,500 18,500 -0- Depreciation 7.300 7.300 Total fixed 37,500 37.500 -0- Total costs $227210 $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 arabe, 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 In September, 65,000 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.) SARASOTA COMPANY Assembling Department Flexible Budget Report Diffi Fav Unfa Neither nor Un Budget Actual Costs I $ - Ch 1314 9.92/15 estion 4 of 4 Assembling Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs $