Gundy Company expects to produce 1,252,800 units of Product XX in 2017. Monthly production is...
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Gundy Company expects to produce 1,252,800 units of Product XX in 2017. Monthly production is expected to range from 72,200 to 110,400 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $1. In March 2017, the company incurs the following costs in producing 91,300 units: direct materials $303.900, direct labor $541,800, and variable overhead $1.010,300. 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 Favorable Budget Actual nor Unfavorable 24 %24 24 24 Were costs controlled? %24
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