Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 70,000 to 100,000 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1. In March 2017, the company incurs the following costs in producing 85,000 units: direct materials $275,000, direct labor $509,000, and variable overhead $767,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)

GUNDY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2017 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced $ $ $ Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced $ $ $ Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Favorable Unfavorable Neither Favorable nor Unfavorable Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced $ $ $ Favorable Unfavorable Neither Favorable nor Unfavorable

Were costs controlled? Yes No