FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Gundy Company expects to produce 1.305.600 units of Product XX in 2020, Monthly production is expected to range
from 84,000 to 120.000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead
$10. Budgeted fixed manufacturing costs unit for depreciation are $6 and for supervision are $1.
In March 2020, the company incurs the following costs in producing 102.000 units: direct materials $438.000, direct labor $709,000
and variable overhead $1,028,000. Actual foxed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March (List variable costs before fixed costs)
Depreciation
Direct Labor
Direct Materials
Fixed Costs
Overhead
Supervision
Total Costs
Total Fixed Costs
Total Variable Costs
Variable Costs
Units Produced
Budget
GUNDY COMPANY
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2020
Actual
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
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Transcribed Image Text:Gundy Company expects to produce 1.305.600 units of Product XX in 2020, Monthly production is expected to range from 84,000 to 120.000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs unit for depreciation are $6 and for supervision are $1. In March 2020, the company incurs the following costs in producing 102.000 units: direct materials $438.000, direct labor $709,000 and variable overhead $1,028,000. Actual foxed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March (List variable costs before fixed costs) Depreciation Direct Labor Direct Materials Fixed Costs Overhead Supervision Total Costs Total Fixed Costs Total Variable Costs Variable Costs Units Produced Budget GUNDY COMPANY Manufacturing Flexible Budget Report For the Month Ended March 31, 2020 Actual Difference Favorable Unfavorable Neither Favorable nor Unfavorable
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