Question

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.)

Answer 1

Answer:

See below.

Explanation:

Flexible budget is when per unit budgeted costs are reconciled with actual production volume.

Flexed Budget Costs

Direct Materials (91,300 * 3)        $273,900

Direct Labor (91,300 * 6)              $547,800

Overheads (91,300 * 11)                $1,004,300

Manufacturing (91,300 * 5)           $456,500

Supervision (91,300 * 1)                 $91,300

Total flexed Costs Budgeted        $2,373,800  

Hope that helps.