Gundy Company expects to produce 1,201,200 units of Product XX in 2017. Monthly production is expected to range from 76,900 to 118,500 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 $2. In March 2017, the company incurs the following costs in producing 97,700 units: direct materials $516,500, direct labor $776,600, and variable overhead $886,300. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March.

Units Produced 76900 118500 Variable Costs Direct Materials 384500 592500 208000 Unfavorable Direct Labor 612800 948000 335200Favorable 692100 1066500 Total Variable Costs 1689400 2607000 917600Unfavorable Fixed Costs 500000 500000 500000Neither Favorable nor Unfavorable 200000 200000 200000 Neither Favorable nor Unfavorable Total Fixed Costs 00000 Neither Favorable nor Total Costs 2389400 3307000 1617600 Unfavorable No Were costs controlled