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Pronghorn Company uses budgets in controlling costs. The August 2017 budget report for the company's Assembling Department is as follow: PRONGHORN 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 $50,740 54,280 25,960 22,420 14,750 5,900 174,050 $49,740 51,480 26,260 21,940 14,580 6,120 170,120 $1,000 Favorable 2,800 Favorable 300 Unfavorable 480 Favorable 170 Favorable 220 Unfavorable 3,930 Favorable Maintenance -0- Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs 10,000 18,200 5,200 33,400 $207,450 10,000 18,200 5,200 33,400 $203,520 $3,930 Favorable The monthly budget amounts in the report were based on an expected production of 59,000 units per month or 708,000 units per year. The Assembling Department manager is pleased with to 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 57,000 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 33,400 - variable costs of 33,400 2.95 per unit: 2.95 The formula is sl + variable costs of $ per unit. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) PRONGHORN COMPANY Assembling Department Flexible Budget Report Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs

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