Question 1

Dukane Company expects to produce 1,519,272 units of product XX in 2012. Monthly production is expected to range from 81,200 to 124,800 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $4, direct labour $5, and overhead $7. Budgeted fixed manufacturing costs per unit for depreciation are $3 and for supervision $3. Prepare a flexible manufacturing budget for the relevant range value using increments of 21,800 units.