Pronghorn Company expects to produce 1,248,000 units of Product XX in 2022. Monthly production is expected to range from 83,000 to 124,800 units. Budgeted variable manufacturing costs per unit are direct materials $5. direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision $1.

In March 2022, the company incurs the following costs in producing 104,000 units: direct materials $540,800, direct labor $619,840, and variable overhead $837,200. Actual fixed costs were equal to budgeted fixed costs.

Prepare a flexible budget report for March. (List variable costs before fixed costs.)

PRONGHORN COMPANY Manufacturing Flexible Budget Report March 31, 2022 Difference Favorable Unfavorab Neither Favor nor Unfavore Variable Costs \begin{tabular}{|ll|} \hline Direct Materials \\ \hline \end{tabular} $520,000 $