This is for my accounting class is from Wiley. If you have any questions please feel free to comment and i will happily answer them for you.

4/16/2016 Problem 24-3A Problem 243A Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Manufacturing Costs Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual $48,380 $47,280 $1,100 Favorable Variable costs Direct materials Direct labor 57,820 54,520 Indirect materials 25,960 26,060 100 Unfavorable Indirect labor 21,240 20,790 450 Favorable Utilities 20,650 20,510 140 Favorable 7,080 7,190 Maintenance Total variable 181,130 176,350 3,300 Favorable 110 Unfavorable 4,780 Favorable Fixed costs Rent 12,100 12,100 -0- Neither Favorable nor Unfavorable Supervision 19,000 19,000 -0- Neither Favorable nor Unfavorable Depreciation 7,300 7,300 -0- Neither Favorable nor Unfavorable Total fixed 38,400 38,400 -0- Neither Favorable nor Unfavorable $219,530 $214,750 $4,780 Favorable Total costs The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 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 57,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is = $ + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY http://edugen.wileyplus.com/edugen/student/mainfr.uni 1/4 4/16/2016 Problem 24-3A Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Budget Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ $ $ $ http://edugen.wileyplus.com/edugen/student/mainfr.uni $ $ 2/4 4/16/2016 Problem 24-3A In September, 63,000 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Budget Favorable Unfavorable Neither Favorable nor Unfavorable Actual Costs $ $ $ $ http://edugen.wileyplus.com/edugen/student/mainfr.uni $ $ 3/4 4/16/2016 Problem 24-3A Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wileyplus.com/edugen/student/mainfr.uni 4/4