View Policies Current Attempt in Progress Pharoah Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. Pharoah Company Budget Report Assembling Department For the Month Ended August 31, 2022 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $56,320 $55,320 $1,000 Favorable Direct labor 61,440 58,640 2,800 Favorable Indirect materials 29.440 29,640 200 Unfavorable Indirect labor 21,760 21,330 430 Favorable Utilities Maintenance 16,000 15,900 8,960 100 Favorable 9,220 Total variable 193,920 190,050 260 Unfavorable 3,870 Favorable Fixed costs Rent Supervision Depreciation Total fixed Total costs 12,500 12,500 17,600 17,600 6,800 6,800 36,900 36,900 -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable $230,820 $226,950 $3,870 Favorable The monthly budget amounts in the report were based on an expected production of 64,000 units per month or 768,000 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 62,000 units were produced. In September, 68,000 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, PHAROAH COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2022 Difference Favorable Unfavorable Neither Favorable Depreciation Direct Labor Direct Materials Fixed Costs Indirect Labor Indirect Materials Maintenance Rent Supervision Total Costs Total Fixed Costs Total Variable Costs Units Utilities Variable Costs Budget Actual Costs nor Unfavorable Question 4 of 4 Neither Favorable Budget Actual Costs nor Unfavorable > eTextbook and Media Favorable Unfavorable Neither Favorable nor Unfavorable