Question

Gundy Company expects to produce 1,207,200 units of Product XX in 2020. Monthly production is expected to range from 76,000 to 118,000 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $7, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $1 Prepare a flexible manufacturing budget for the relevant range value using 21,000 unit increments. (List variable costs before fixed costs.) GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2020 $ $

Answer 1

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2020 Activity level Finished units 97000 118000 Variable costs Direct materials 228000 291000 354000 Direct labor 532000 679000 826000 Over head 760000 970000 1180000 Total variable Costs 15200001940000 2360000 Fixed Costs Depreciation 402400 402400 402400 Supervision 100600100600 100600 Total Fixed cost 503000 503000 503000 Total Costs 2023000 2443000 2863000