Gundy Company expects to produce 1,259,760 units of Product XX in 2012. Monthly

Question

Gundy Company expects to produce 1,259,760 units of Product XX in 2012. Monthly production is expected to range from 80,810 to 122,370 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $1. Prepare a flexible manufacturing budget for the relevant range value using 20,780 unit increments.

GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012

GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012

Total CostsTotal Fixed CostsSupervisionTotal Variable CostsVariable CostsActivity LevelOverheadDirect MaterialsDepreciationDirect LaborFinished UnitsFixed Costs Total CostsActivity LevelDirect MaterialsTotal Fixed CostsDirect LaborFinished UnitsSupervisionTotal Variable CostsVariable CostsFixed CostsDepreciationOverhead

SupervisionTotal Variable CostsTotal CostsVariable CostsActivity LevelFixed CostsDepreciationTotal Fixed CostsDirect LaborDirect MaterialsFinished UnitsOverhead Direct LaborFixed CostsVariable CostsOverheadDirect MaterialsSupervisionTotal CostsDepreciationActivity LevelFinished UnitsTotal Fixed CostsTotal Variable Costs

$

$

$

Direct LaborDirect MaterialsFinished UnitsFixed CostsTotal Variable CostsTotal Fixed CostsDepreciationOverheadSupervisionTotal CostsVariable CostsActivity Level

Variable CostsFinished UnitsFixed CostsOverheadTotal Fixed CostsTotal Variable CostsSupervisionActivity LevelDirect LaborTotal CostsDepreciationDirect Materials

Total CostsDepreciationDirect LaborVariable CostsActivity LevelOverheadTotal Fixed CostsDirect MaterialsFinished UnitsFixed CostsSupervisionTotal Variable Costs

$

$

$

Activity LevelDirect LaborSupervisionTotal CostsDepreciationTotal Variable CostsFixed CostsDirect MaterialsTotal Fixed CostsFinished UnitsOverheadVariable Costs Total Fixed CostsTotal Variable CostsDepreciationFinished UnitsVariable CostsActivity LevelDirect LaborDirect MaterialsFixed CostsSupervisionTotal CostsOverhead

Total Fixed CostsFixed CostsDirect LaborTotal Variable CostsVariable CostsActivity LevelDepreciationDirect MaterialsOverheadFinished UnitsSupervisionTotal Costs

Total CostsTotal Variable CostsSupervisionFixed CostsActivity LevelVariable CostsDepreciationDirect MaterialsDirect LaborOverheadTotal Fixed CostsFinished Units

DepreciationActivity LevelFixed CostsTotal CostsVariable CostsOverheadSupervisionTotal Fixed CostsTotal Variable CostsDirect LaborDirect MaterialsFinished Units

$

$

$

Explanation / Answer

Gundy Company Budgeted yearly Production units       1,259,760 Fixed Manufactring OH /Unit                        6 Budgeted Fixed Manufacturing Cost       7,558,560 Gundy Company All Amounts in $ Flexible Mnaufacturing Budget Unit Rate At 80810/month level At 101590/month level At 122370/month level Details Monthly Yearly Monthly Yearly Monthly Yearly Units Produced      80,810            969,720      101,590          1,219,080         122,370          1,468,440 Manufacturing costs Yealy Amt$ Yealy Amt$ Yealy Amt$ Direct Materials 3        2,909,160          3,657,240          4,405,320 Direct Labor 6        5,818,320          7,314,480          8,810,640 Variable Manufacturing Overhead 10        9,697,200       12,190,800        14,684,400 Fixed Manufacturing Costs        7,558,560          7,558,560          7,558,560 Total Cost Of Manufacture $ 25,983,240 $   30,721,080 $   35,458,920

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