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Matolka Marine Inc. has just finished its operations for August, which was a particularly busy month. They processed 24% more product than had been originally

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Matolka Marine Inc. has just finished its operations for August, which was a particularly busy month. They processed 24% more product than had been originally planned for the month. A report prepared by Management comparing actual costs to budgeted costs appears below. Budget 600 Variance 480 F Matoika Marine Cost Control Report For the Month Ended August 31 Actual Units Produced 1,080 Variable costs: Marine supplies $ 8,900 Emission tests 12,239 Other Variable 2,650 Administrative supplies 600 Total variable cost 24,380 Fixed costs: Staff salaries 19,500 Equipment depreciation 4,800 Rent 1.950 Utilities 770 Total fixed cost 27.920 Total cost 551,400 $ 9,000 8,100 1,200 300 18,680 $ 100 4,130 U 1,4500 300 u 5,780 U 1,309 19,500 3,500 1,950 600 25.550 340,150 170 1.4700 $7.2580 The managing director was very unhappy with this report, claiming that his costs were higher than expected. He also pointed out that the additional costs had been fully covered by payments from suppliers. The accountant who prepared the report pointed out that actual costs were a lot higher than promised in the budget Required: 1. Prepare a new performance report for Aujust using the flexible budget approach. (Note Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.). Indicate the effect of each variance by selecting "F" for favourable, "U* for unfavourable, and "None for no effect (.o., zero variance). Round "Cost Formule" answers to 2 decimal places) Required: 1. Prepare a new performance report for August using the flexible budget approach. (Note: Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.). (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places) Mi Mane Flexible Budget Performance Report For The Month Ended August 31 Actual Spending of Budget Variance Flexible Budget Static Budget Cost Formula (Per unit) Activity Level (unit) 1080 1080 600 Variable costs Marine supplies Emmission tests Other variable Expenses Administrative supplies Total variable cost Food costs Staff salanes Equipment depreciation Rent Utilities Totalfixed cost Total cost

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