Question

Brief Exercise 10-4 Gundy Company expects to produce 1,222,800 units of Product XX in 2020. Monthly production is expected to range from 78,000 to 114,000 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $3. Prepare a flexible manufacturing budget for the relevant range value using 18,000 unit increments. (List variable costs before fixed costs.) GUNDY COMPANY Monthly Flexible Manufacturing Budget For the Year 2020 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer-

GUNDY COMPANY
Monthly Flexible Manufacturing Report
For the Year 2020
UNITS	78000	96000	114000
Variable Expenses:-
Direct material	78000 units*$5 per unit =$390000	96000 units*$5 per unit =$480000	114000 units*$5 per unit =$570000
Direct labor	78000 units*$6 per unit =$468000	96000 units*$6 per unit =$576000	114000 units*$6 per unit =$684000
variable overhead	78000 units*$9 per unit =$702000	96000 units*$9 per unit =$864000	114000 units*$9 per unit =$1026000
Total Variable costs (a)	1560000	1920000	2280000
Fixed Expenses:-
Supervision	78000 units*$6 per unit =$468000	96000 units*$6 per unit =$576000	114000 units*$6 per unit =$684000
Depreciation	78000 units*$3 per unit =$234000	96000 units*$3 per unit =$288000	114000 units*$3 per unit =$342000
Total Fixed costs (b)	702000	864000	1026000
Total costs (c=a+b)	2262000	2784000	3306000