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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 $53,680 59,780 29,280 19,520 15,250 12,200 $52,580 56,480 29,380 19,060 15,140 12,530 $1,100 Favorable 3,300 Favorable 100 Unfavorable 460 Favorable 110 Favorable 330 Unfavorable Maintenance Total variable 189,710 185,170 4,540 Favorable Fixed costs Rent -0- Supervision Depreciation 11,700 18,500 7,300 37,500 11,700 18,500 7,300 -0- -0- Total fixed 37,500 -0- Total costs $227,210 $222,670 $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. State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) 37500 The formula is $ + variable costs of $ 3.11 per unit. Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) 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 59000 59000 Variable Costs Direct Materials 51920 52580 660 Unfavorable Direct Labor 57820 56480 1340 Favorable Indirect Materials 28320 29380 1060 Unfavorable In September, 65,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) SARASOTA COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Costs Units 65,000 65,000 Variable Costs Direct Materials $ Direct Labor Indirect Materials Indirect Labor Utilities Maintenance

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