Gundy Company expects to produce 1,268,880 units of Product XX in 2014. Monthly production is expected to range from 80,870 to 128,050 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $3. In March 2014, the company incurs the following costs in producing 104,460 units: direct materials $338,581, direct labor $620,883, and variable overhead $1,047,289. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March.

Favorable (F) Unfavorable (U) Neither Favorable nor Unfavorable (N Budget Actual Units Produced 104460 Variable Costs Direct Materials 338581 Direct Labor 620883 Overhead 1047289 Total Variable Costs 2006753 Fixed Costs Depreciation Supervision Total Fixed Costs Total Costs