mbling Department For the Month Ended August 31, 2017 Difference Favorable Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $51,240 $50,140 $1,100 Favorable Direct labor 59,780 56,580 3,200 Favorable Indirect materials 25,620 25,820 200 Unfavorable Indirect labor 21,960 21,560 400 Favorable Utilities 18,300 18,170 130 Favorable Maintenance 6,100 6,450 350 Unfavorable Total variable 183,000 178,720 4,280 Favorable Fixed costs Rent 10,100 10,100 -0- Supervision 18,000 18,000 -0- Depreciation 6,200 6,200 -0- Total fixed 34,300 34,300 -0- Total costs $217,300 $213,020 $4,280 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. 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 (List variable costs before fixed costs.) CULVER COMPANY Assembling Department Flexible Budget Report For the Month Ended Septe Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 65,000 65,000 Variable Costs Direct Materials 51,240 $ Direct Labor Indirect Materials Indirect Labor Utilities Maintenance Total Variable Costs Fixed Costs Rent Supervision Depreciation Total Fixed Costs Total Costs