(SO 1, 2, 3) State the total budgeted cost formula, and prepare flexible budget reports for two time periods. P11-40A Laesecke Company uses budgets to control costs. The May 2016 budget report for the company's packaging department is as follows: LAESECKE COMPANY Budget Report Average opern (a) Prepare a (c) Calculate 2. The a Month Ended May 31, 2016 in el b) C Variable costs Direct materials Direct labour Indirect materials Indirect labour Utilities Maintenance s 37,500$ 38,000 47,000 15,200 13,000 45,000 15,000 12,500 10,000 s 500 U 2,000 U 200 U 500 U 400 F 200 U 3 Sales Total variable costs Rent Supervision 3,000 Fixed costs 10,000 7,000 5,000 10,000 7,000 Depreciation Total fixed costs Total costs $147,000 $150,000 $3,000 U The monthly budget amounts in the report were based on an expected production of 50,000 units per month or 600,000 units per year. The company president was unhappy with the department manager's performance. The department man ager could not understand the unfavourable results. In May, 55,000 units were produced. (a) State the total budgeted cost formula (b) Budget $159,500 (b) Prepare a budget report for May, using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? cost was 20% less in June than its actual cost in May, and (2) fixed costs were the same in the month of June as in May. (c) in June, 40,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable c) Budget $122.000 Actual $124,400 lgaluit use