CALCULATOR PRINTER VERSION BACK NE Problem 23-03A a, b, c Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company's Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable Manufacturing Costs Budget Actual nor Unfavorable Variable costs Direct materials $53,680 $52,580 $1,100 Favorable Direct labor 59,780 56,480 3,300 Favorable Indirect materials 29,280 29,380 100 Unfavorable Indirect labor 19,520 19,060 460 Favorable Utilities 15,250 15,140 110 Favorable Maintenance 12,200 12.530 330 Unfavorable Total variable 189,710 185,170 4,540 Favorable Fixed costs Rent 11,700 11,700 -0-Neither Favorable nor Unfavorable Supervision 18,500 18,500 -0-Neither Favorable nor Unfavorable Depreciation 7.300 7,300-0- Neither Favorable nor Unfavorable Total fixed 37.500 37,500 -0-Neither Favorable nor Unfavorable Total costs $227,210 $222,670 $4,540 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) 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 Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs 17 + 4 $ . LINK TO TEXT CALCULATOR PRINTER VERSION BACK NEET 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.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended september 30, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs