Hello, I am pleased with an question you just completed. I have another spreadsheet that I am prepping for test, Will you please complete the tabs P10-3A, p11-2A, P13-7A, P14-3 and P14-9 in its entirety? I have attached the spreadsheet. Instructions (a) State the total monthly budgeted cost formula. (b) Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? (c) In September, 64,000 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. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a “?” . ATTACHMENT PREVIEW Download attachment Copy of BUSI5233.Minor 4 – Operational and Financial Reporting and Analysis.xlsx P10-3A State total budgeted cost formula, and prepare flexible budget s for 2 time periods Ratchet Company uses budgets in controlling costs. The August 2017 budget report for the company’s Assembling Department is as follows. Ratchet Company Budget Report Assembling Department For the Month Ended August 31, 2017 Manufacturing Cost Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Budget 47,000 51,200 24,200 17,500 14,900 12,400 167,200 ### ### ### 35,000 $ 206,000 Total costs 48,000 54,000 24,000 18,000 15,000 12,000 171,000 12,000 17,000 6,000 35,000 Fixed costs Rent Supervision Depreciation Total fixed $ Actual Difference Favorable F Unfavorable U $1,000 F 2,800 F 200 U 500 F 100 F 400 U 3,800 F $ 202,200 0 0 0 0 $3,800 F The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 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 58,000 units were produced. Instructions (a) State the total monthly budgeted cost formula. (b) Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? (c) In September, 64,000 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. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) State the total monthly budgeted cost formula. Fixed cost (b) Value + variable cost of Value per unit Prepare a budget report for August using flexible budget data. Why does this report provide a better basis for evaluating performance than the report based on static budget data? RATCHET COMPANY Assembling department Flexible budget Report For the Month Ended August 31, 2017 Units Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision Depreciation Total fixed Total costs Response: Budget at 58,000 units Actual Costs 58,000 units Difference Favorable F Unfavorable U ? ? ? ? ? ? ? Value Value Value Value Value Value ? ? ? ? ? ? ? ? Value Value Value ? Value Value Value ? ? ? ? ? ? ? ? (c) In September, 64,000 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. RATCHET COMPANY Assembling department Flexible budget Report For the Month Ended September 30, 2017 Units Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance Total variable Fixed costs Rent Supervision