*Brief Exercise 22-5 /1 Your answer is partially correct. again. Gundy Company expects to produce 1,258,800 units of Product XX in 2017. Monthly production is expected to range from 80,800 to 111,200 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $8, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3 In March 2017, the company incurs the following costs in producing 96,000 units: direct materials $505,000, direct labor $763,000, and variable overhead S367,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List varfable costs before fixed costs.) GUNDY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Units Produc 6000 6000 ariable (C irect Material irect Labor 0500 6300 67000 25000 Unfavorabl 5000 Favorable 3000 Unfavorabl 23000 Unfavorabl erhea 64000 Total Variable Cost 2112000 $213500 ixed Cost reciation 480000 480000 er Favorable nor Unfavorabl uperviSI0 266000 268000 er Favorable nor Unfavorabl Total Fixed Cos 768000 768000 er Favorable nor Unfavorabl 2880000 23000 TUnfavorabl Total Cost 290300o Were costs controlled