Please help me answer part C. Anything in red needs to be filled. Here is the qu

Question

Please help me answer part C. Anything in red needs to be filled. Here is the question. I've included parts A and B.

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.)

Hill Company uses budgets in controlling costs. The August 2014 budget report for the company's Assembling Department is as follows. HILL COMPANY Budget Report Assembling Department For the Month Ended August 31, 2014 Difference Favorable F Unfavorable U Neither Favorable nor Unfavorable N Actual Manufacturing CostsBudget Variable costs Direct materials Direct labor Indirect materials Indirect labor Utilities Maintenance $49,410 $48,310 52,110 28,180 19,640 16,910 10,760 180,560 175,910 55,510 28,060 20,130 17,080 10,370 $1,100F 3,400F 120U 490F 170F 390U 4,650F Total variable Fixed costs Rent Supervision Depreciation 11,370 17,670 7,900 36,940 $217,500 $212,850 11,370 17,670 7,900 36,940 0-N 0-N 0-N 0-N $4,650 F Total fixed Total costs 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.

Explanation / Answer

Hill Company September results Budgeted. Budget units Aug             61,000 Actual units         59,000 Units 65000 Details Budgeted Amt Aug Budgeted Amt/unit Actual Amt Aug Actual Amt /Unit Aug Flexible Budget Amt Actual Amt Variance F/U Direct Materials             49,410               0.81            48,310              0.82      52,650.00      58,545.17      5,895.17 U Direct Labor             55,510               0.91            52,110              0.88      59,150.00      63,150.25      4,000.25 U Indirect Material             28,060               0.46            28,180              0.48      29,900.00      34,150.34      4,250.34 U Indirect Labor             20,130               0.33            19,640              0.33      21,450.00      23,801.02      2,351.02 U Utilities             17,080               0.28            16,910              0.29      18,200.00      20,492.63      2,292.63 U Maintenance             10,370               0.17            10,760              0.18      11,050.00      13,039.66      1,989.66 U Total Variable           180,560               2.96         175,910              2.98    192,400.00    213,179.07    20,779.07 U Fixed costs Rent             11,370            11,370            11,370            11,370                   -   Supervision             17,670            17,670            17,670            17,670                   -   Depreciation               7,900              7,900              7,900              7,900                   -   Total Fixed             36,940            36,940            36,940            36,940                   -   Total Cost           217,500         212,850          229,340          250,119    20,779.07 U Each variable cost in Sep increased bu 10% over actual cost of August as per given assumption

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