Accounting Manufacturing Budget

Brief Exercise 10-4 Gundy Company expects to produce 1,203,600 units of Product XX in 2017. Monthly production is expected to range from 72,700 to 116,100 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3. Prepare a flexible manufacturing budget for the relevant range value using 21,700 unit increments. (List variable costs before fixed costs.) GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017 Activity Level Finished Units 72,700 94400 Variable Costs Direct Materials 218,100 Direct Labor 436,200 Overhead 799,700 Total Variable Costs 1,454,000 2322000 Fixed Costs Depreciation 401,200 401,200 401,200 Supervision Total Fixed Costs Total Costs 2590100