Gundy Company expects to produce 1,215,600 units of Product XX in 2017. Monthly production is expected to range from 79,300 to 111,300 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2. In March 2017, the company incurs the following costs in producing 95,300 units: direct materials $499,500, direct labor $570,800, and variable overhead $1,056,300. 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 Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Units Produced 95300 95300 Variable Costs Direct Materials Unfavorable Direct Labor Favorable Overhead Unfavorable Total Variable Costs Unfavorable Fixed Costs Depreciation Neither Favorable nor Unfavorable Supervision Neither Favorable nor Unfavorable Total Fixed Costs Neither Favorable nor Unfavorable Total Costs Unfavorable