Sheridan Company expects to produce 1,248,000 units of Product XX in 2020. Monthly production is expected to range from 87,000 to 129,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1. In March 2020, the company Incurs the following costs in producing 108,000 units: direct materials $456,000, direct labor $639,000, and variable overhead $1,196,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a exible budget report for March (List variable costs before fixed costs.) SHERIDAN COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2020 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Units Produced 108000 108000 Variable Costs Direct Materials V $ 432000 456000 Unfavorable Direct Labor 648000 639000 Unfavorable Overhead V 1188000 1196000 Unfavorable Total Variable Costs Fixed Costs Depreciation 648000 648000