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Question : Gundy Company expects to produce 1,204,800 units of Product XX

Gundy Company expects to produce 1,204,800 units of Product XX in 2017. Monthly production is expected to range from 89,700 to 125,700 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $6, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 18,000 unit increments. (List variable costs before fixed costs.)

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