Yaeger Company uses budgets in controlling costs. The company based the monthly budget amounts in the report on an expected production of 60,000 units per month or 720,000 units per year. The assembling department manager is pleased with the report and expects a raise. The company president, however, is unhappy with the results for August, because only 58,000 units were produced. The August 2020 budget report for the company's assembling department is as follows:

a.State the total monthly budgeted cost formula.

b.construct a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data?

b. Budget $198,400

c.In September, 64,000 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.

c. Budget $215,200