P$23\mathrm{.}3(101,2),$ AW Ratehel Company uses budpets in controlling costs. The August $2022$ budget report

for the compary's Asembling Department is as follows.

State batal budy wed car equmilin, and

prepare flexthe hidge ipporspof

$2$ ineperixts

$($P$)$ Exact

The monthly budget amounts in the repors were based an an expected production of $60,000$ units per

month of $720,000$ units per year. The Assembling Department mamager is pleased with the repoit and

expects a ratse, of al least pratse for a job well done. The compiry prestent, imevever, is unhaply with

Instructions

a$.$ State the total montily budected cant cyuation.

b$.$ Plepare a budget report for Auguat uxing tlex ble budget data. Why does this report provide a better

hasis for evaloating pertormance than the report based on static budgel data?

c$.$ In $eptember, $64,$ owo units were proituest. Prepare the budget repont using fexible budget data.

assuming $(1)$ each variable cont was ionit the her than its actwal cost in August, and $(2)$ fixed costs

were the sime in keptember as in August.