Gundy Company expects to produce 1,260,000 units of Product XX in 2017. Monthly production is expected to range from 85,600 to 124,800 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 $6 and for supervision are $2. Prepare a flexible manufacturing budget for the relevant range value using 19,600 unit increments.

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017 Activity Level Finished Units 85,600 148,000 124,800 Variable Costs 4 Direct Materials 342,400 $ 592,000 $ 499,200 Direct Labor 599,200 1,036,000 873,600 Overhead 856,000 1,480,000 1,248,000 Total variable Costs a $ 1,797,600 ,797,500 $ 3,108,000 3,108,000 2,620,800 Fixed Costs Depreciation Depreciation 630,000 630,000 C 630,000 630,000 Supervision 210,000 210,000 210,000 840,000 840,000 840,000 Total Fixed Costs Total Costs 8 40,000 2637,600 $ Total Costs $ 2,637,600 3,948,00 $ 3,948,000 3,460,800