Sunland Company expects to produce $1,260,000$ units of product XX in $2022.$ Monthly production is expected to range from $84,400$ to $117,600$ units. Budgeted variable manufacturing costs per unit are as follows: direct materials $$3,$ direct labour $$7,$ and overheld $$11.$ Budgeted fixed manufacturing costs per unit for depreciation are $$4$ and for supervision $$3.$

In March $2022,$ the company incurs the following costs in producing $101,000$ units: direct materials $$327,000,$ direct labour $$702,000,$ and variable overhead $$1,119,000.$ Actual fixed overhead equalled budgeted fixed overhead.

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

SUNLAND COMPANY

Manufacturing Flexible Budget Report

Budget

Actual

Difference

Favourable

Unfavourable

Neither Favourable nor Unfavourable