QUES: Cullumber Company expects to produce1,320,000units of product XX in 2022. Monthly production is expected to range from70,600to104,200units. Budgeted variable manufacturing costs per unit are as follows: direct materials $3, direct labour $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4and for supervision $3. In March 2022, the company incurs the following costs in producing87,400units: direct materials $288,200, direct labour $602,800, and variable overhead $964,400. Actual fixed overhead equalled budgeted fixed overhead.

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

CULLUMBER COMPANY Manufacturing Flexible Budget Report Difference Favourable Unfavourable Neither Favoural Budget Actual nor Unfavourab