Gundy Company expects to produce 1,242,000 units of Product XX in 2017. Monthly production is expected to range from 72,700 to 109,700 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $3. In March 2017, the company incurs the following costs in producing 91,200 units: direct materials $392,800, direct labor $634,400, and variable overhead $915,000. Actual fixed costs were equal to budgeted fixed costs.

Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Units Produced Variable Costs Direct Materials 392800 Unfavorable Direct Labor 634400 Favorable Overhead 91500 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