Managerial Accounting: P24-3A Ratchett Company uses bugets in controlling costs

Managerial Accounting
Ratchett Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows.
Ratchett Company
Budget Report
Assembling Department
For the Month Ended August 31, 2017
Manufacturing Budget Actual Amount Favorable, Unfavorable, Neither
Variable costs
Direct materials 53,760 52,760 1,000 Favorable, Unfavorable, Neither
Direct labor 62,720 59,620 3,100 Favorable, Unfavorable, Neither
Indirect materials 25,600 25,800 200 Unfavorable
Indirect labor 20,480 20,020 460 Favorable, Unfavorable, Neither
Utilities 22,400 22,280 120 Favorable, Unfavorable, Neither
Maintenance 12,800 13,180 380 Unfavorable
Total Variable 197,760 193,660 4,100 Favorable
Fixed costs
Rent 10,800 10,800 - Neither
Supervision 17,600 17,600 - Neither
Depreciation 5,700 5,700 - Neither
Total Fixed 34,100 34,100 - Neither
Total Costs 231,860 227,760 4,100 Favorable

The monthly budgets amounts in the report were based on an expected production of 64,000 units per month or 768,000 units per year. The Assembly Department manager is pleased with the report and expects a least praise for a job well done. The company president, however, is unhappy with the results for August because only 62,000 units were produced.

a. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25)
b. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs)
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