Sunland Company uses budgets in controlling costs. The August 2022 budget report for the companys Assembling Department is as follows.

Sunland 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	$51,240	$50,140	$1,100	Favorable
Direct labor	59,780	56,580	3,200	Favorable
Indirect materials	25,620	25,820	200	Unfavorable
Indirect labor	21,960	21,560	400	Favorable
Utilities	18,300	18,170	130	Favorable
Maintenance	6,100	6,450	350	Unfavorable
Total variable	183,000	178,720	4,280	Favorable
Fixed costs
Rent	10,100	10,100	0	Neither Favorable nor Unfavorable
Supervision	18,000	18,000	0	Neither Favorable nor Unfavorable
Depreciation	6,200	6,200	0	Neither Favorable nor Unfavorable
Total fixed	34,300	34,300	0	Neither Favorable nor Unfavorable
Total costs	$217,300	$213,020	$4,280	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 a raise, 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.

(a)

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.)