Brief Exercise 22-5

Gundy Company expects to produce 1,250,760 units of Product XX in 2014. Monthly production is expected to range from 81,600 to 114,720 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3. In March 2014, the company incurs the following costs in producing 98,160 units: direct materials $513,847, direct labor $681,412, and variable overhead $989,504. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)