Brief Exercise 22-4

GundyCompany expects to produce1,238,400units of Product XX in 2017. Monthly production is expected to range from70,200to110,600units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using20,200unit increments.(List variable costs before fixed costs.)

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017
SupervisionActivity LevelTotal CostsDepreciationDirect LaborVariable CostsTotal Fixed CostsFixed CostsDirect MaterialsFinished UnitsOverheadTotal Variable Costs
Direct LaborOverheadTotal Fixed CostsFinished UnitsTotal CostsTotal Variable CostsVariable CostsActivity LevelDepreciationDirect MaterialsSupervisionFixed Costs
Activity LevelVariable CostsDirect LaborDepreciationFixed CostsDirect MaterialsTotal Fixed CostsFinished UnitsOverheadSupervisionTotal CostsTotal Variable Costs
Activity LevelFixed CostsDepreciationDirect LaborVariable CostsTotal Variable CostsDirect MaterialsFinished UnitsOverheadSupervisionTotal CostsTotal Fixed Costs	$	$	$
Fixed CostsFinished UnitsDirect MaterialsVariable CostsTotal CostsOverheadDepreciationDirect LaborSupervisionTotal Fixed CostsTotal Variable CostsActivity Level
Direct LaborSupervisionDirect MaterialsTotal Variable CostsOverheadTotal CostsTotal Fixed CostsVariable CostsDepreciationActivity LevelFinished UnitsFixed Costs
Finished UnitsFixed CostsOverheadTotal Fixed CostsActivity LevelSupervisionTotal CostsTotal Variable CostsVariable CostsDepreciationDirect LaborDirect Materials	$	$	$
Total Fixed CostsFinished UnitsDirect LaborFixed CostsDirect MaterialsSupervisionOverheadTotal CostsTotal Variable CostsVariable CostsActivity LevelDepreciation
OverheadSupervisionTotal CostsTotal Fixed CostsTotal Variable CostsActivity LevelDepreciationVariable CostsDirect LaborDirect MaterialsFinished UnitsFixed Costs
DepreciationVariable CostsOverheadDirect LaborDirect MaterialsSupervisionTotal Variable CostsFinished UnitsFixed CostsActivity LevelTotal CostsTotal Fixed Costs
OverheadTotal CostsTotal Fixed CostsTotal Variable CostsFixed CostsDepreciationFinished UnitsSupervisionVariable CostsActivity LevelDirect LaborDirect Materials
Activity LevelTotal Fixed CostsDirect LaborTotal Variable CostsDepreciationVariable CostsDirect MaterialsFinished UnitsOverheadFixed CostsSupervisionTotal Costs	$	$	$

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