Dukane Company expects to produce 1,275,600 units of product XX in 2020. Monthly production is expected to range from 83,900 to 122,100 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $5, direct labour $8, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision $1.

In March 2020, the company incurs the following costs in producing 103,000 units: direct materials %544,000, direct labour $815,000, and variable overhead $1,038,000. Actual fixed overhead equaled budgeted fixed overhead.

\fDUKANE COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2020