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*Problem 14-3A (Part Level Submission) Sarasota Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follows. SARASOTA COMPANY Budget Report Assembling Department For the Month Ended August 31, 2017 Difference Budget Actual Favorable Unfavorable Manufacturing Costs Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs $53,680 59,780 29,280 19,520 15,250 12,200 189,710 $52,580 56,480 29,380 19,060 15,140 12,530 185,170 $1,100 Favorable 3,300 Favorable 100 Unfavorable 460 Favorable 110 Favorable 330 Unfavorable 4,540 Favorable 11,700 18,500 7,300 37,500 5227,210 11,700 18,500 7,300 37,500 $222,670 -0- -0- $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) Your answer is correct. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $87500 + variable costs of st. 11 per unit. SARASOTA COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs units 65000 65000 Variable Costs Direct Materials 57200 57838 Unfavorable birect Labar 63700 62128 Favorable Indirect Materials 31200 | 32318 Unfavorable ndirect Labor 11 20800 Peilities Unfavorable Unfavorable 16250 Maintenance 13000 Unfavorable 202150 203687 Total Variable Costs Fixed Costs Unfavorable Peene 11700 11700 O Neither Favorable nor Unfavorable 18500 18500 g Neither Favorable nor Unfavorable Supervision Depreciation Total Fixed Costs 7300 Neither Favorable nor Unfavorable 37500 27500 o Neither Favorable nor Unfavorable Total Costs 239650 Unfavorable

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