Brief Exercise 22-5 Your answer 1s partially correct. Try again. Gundy Company e

Question

Brief Exercise 22-5 Your answer 1s partially correct. Try again. Gundy Company expects to produce 1,201,200 units of Froduct XX in 2017. Monthly production is expected to range from 76,900 to 118,500 units. Budgeted variable manufacturing costs per unit are: direct materials $5, direct labor $8, and averhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $s and for supervision are $2. In March 2017, the compeny inours the follow ng costs in producing 97,700 units: direct materials $516,500, direct labor $776,600, and variable overhead $886,300, Actual fixed costs were equel to budgeted fixed costs Prepare a fiexible budget report for March. (List varlable costs before fixed costs.) GUNDY COMPANY Manufacturing Flexble Budget Report For the Month Ended March 31, 2017 Favorable Budget Actual arable Cost: Direc: Mater 92500TUworable Direct Labor Favorable 1066500TU-vorable Neither Favorabig nor unfavorable Naither Fa vorabla nor U Total Fixed Cots GDDITUEavorable

Explanation / Answer

Budget Actual Units produced 97700 97700 Variable costs: Direct materials 488500 516500 28000 Unfavorable Direct labor 781600 776600 5000 Favorable Overhead 879300 886300 7000 Unfavorable Total variable costs 2149400 2179400 30000 Unfavorable Fixed costs: Depreciation 500500 500500 0 None Supervision 200200 200200 0 None Total fixed costs 700700 700700 0 None Total costs 2850100 2880100 30000 Unfavorable

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