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Brief excersize 22-5

Gundy Company expects to produce 1,248,000 units of Product XX in 2017. Monthly production is expected to range from 87,300 to 130,100 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 2017, the company incurs the following costs in producing 108,700 units: direct materials $458,800, direct labor $643,200, and variable overhead $1,203,700. Actual fixed costs were equal to budgeted fixed costs.

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

Gundy Company expects to produce 1,248,000 units of Product XX in 2017. Monthly production is expected to range from 87,300 to 130,100 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 2017, the company incurs the following costs in producing 108,700 units: direct materials $458,800 direct labor $643,200, and variable overhead $1,203,700. Actual fixed costs were equal to budgeted fixed costs Prepare a flexible budget report for March. (List variable costs before fixed costs GUNDY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2017 Difference Favorable Unfavorable Neither Faverable nor Uefavorable Budget Actual Were costs controlled Click if you would like to Show Work for this question: Open Sh

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