Accounting Brief Exercise 24-5

Gundy Company expects to produce 1, 242,000 units of Product XX in 2017. Monthly production is expected to range from 72,700 to 109,700 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3. In March 2017, the company incurs the following costs in producing 91, 200 units: direct materials $392,800, direct labor $634,400, and variable overhead $915,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)