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Gundy Company expects to produce 1,250,520 units of Product XX in 2014

Accounting

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Gundy Company expects to produce 1,250,520 units of Product XX in 2014. Monthly production is expected to range from 85,650 to 116,370 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2.

In March 2014, the company incurs the following costs in producing 101,010 units: direct materials $433,050, direct labor $599,100, and variable overhead $1,015,436. Actual fixed costs were equal to budgeted fixed costs.

Prepare a flexible budget report for March.