Sarasota Company uses budgets in controlling costs. The August 2022 budget report for the company's...
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Sarasota Company uses budgets in controlling costs. The August 2022 budget report for the company's Assembling Department is as follows. 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) State the total monthly budgeted cost equation. (Round cost per unit to 2 decimal places, e.g. 1.25.) The equation is fixed costs $+ variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) SARASOTA COMPANY Assembling Department Flexible Budget Report Favi Unfai Neither Budget Actual Costs nor Uni $ $ $ 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 Sentember as in Aueust. (List variable costs
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