| Problem 10-3A a, b 1, c (Part Level Submission) (Video) 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 nor Unfavorable Manufacturing Costs Budget Actual Variable costs Direct materials $48,380 $47,280 $1,100 Favorable Direct labotr Indirect materials 25,960 26,060 100 Unfavorable Indirect labor Utilities Maintenance 57,820 54,520 3,300 Favorable 21,240 20,790 450 Favorable 20,650 20,510 140 Favorable 7,080 7,190 110 Unfavorable Total variable 181,130 176,350 4,780 Favorable Fixed costs Rent Supervision Depreciation 12,100 12,100 0- Neither Favorable nor Unfavorable 19,000 19,000 -0- Neither Favorable nor Unfavorable 7,300 7,300-0- Neither Favorable nor Unfavorable 38,400 38,400 0- Nelther Favorable nor Unfavorable Total fixed Total costs $219,530 $214,750 $4,780 Favorable