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Brief Exercise 22-4

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Gundy Company expects to produce 1,236,000 units of Product XX in 2017. Monthly production is expected to range from 84,600 to 124,800 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $7, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $1.

Prepare a flexible manufacturing budget for the relevant range value using 20,100 unit increments. (List variable costs before fixed costs.)

GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2017
SupervisionFinished UnitsFixed CostsDepreciationTotal CostsDirect LaborTotal Fixed CostsTotal Variable CostsVariable CostsActivity LevelOverheadDirect Materials
OverheadFixed CostsSupervisionVariable CostsDepreciationTotal CostsDirect LaborTotal Fixed CostsTotal Variable CostsActivity LevelFinished UnitsDirect Materials
Activity LevelTotal CostsFixed CostsTotal Variable CostsVariable CostsDepreciationDirect LaborOverheadSupervisionDirect MaterialsFinished UnitsTotal Fixed Costs
Direct LaborTotal CostsOverheadTotal Variable CostsSupervisionTotal Fixed CostsVariable CostsActivity LevelDepreciationDirect MaterialsFinished UnitsFixed Costs	$		$		$
DepreciationFixed CostsActivity LevelOverheadTotal Fixed CostsSupervisionDirect LaborTotal Variable CostsFinished UnitsVariable CostsDirect MaterialsTotal Costs
Activity LevelTotal Variable CostsTotal CostsDepreciationFinished UnitsVariable CostsDirect LaborFixed CostsOverheadDirect MaterialsSupervisionTotal Fixed Costs
Direct MaterialsVariable CostsDirect LaborOverheadTotal CostsTotal Fixed CostsFinished UnitsFixed CostsActivity LevelTotal Variable CostsDepreciationSupervision	$		$		$
Fixed CostsOverheadTotal Fixed CostsDirect LaborActivity LevelVariable CostsTotal CostsTotal Variable CostsSupervisionFinished UnitsDepreciationDirect Materials
Total Fixed CostsFixed CostsOverheadSupervisionActivity LevelTotal Variable CostsVariable CostsDepreciationTotal CostsDirect LaborDirect MaterialsFinished Units
Total Fixed CostsFinished UnitsTotal Variable CostsDepreciationSupervisionDirect LaborFixed CostsActivity LevelDirect MaterialsOverheadTotal CostsVariable Costs
Direct MaterialsFixed CostsFinished UnitsTotal CostsVariable CostsDirect LaborOverheadTotal Variable CostsSupervisionActivity LevelTotal Fixed CostsDepreciation
Direct LaborTotal Fixed CostsVariable CostsTotal Variable CostsDirect MaterialsFinished UnitsActivity LevelSupervisionDepreciationFixed CostsOverheadTotal Costs	$		$		$

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