Gundy Company

Brief Exercise 21-4

Gundy Company expects to produce 1,272,600 units of Product XX in 2012. Monthly production is expected to range from 84,440 to 116,020 units. Budgeted variable manufacturing costs per unit are: direct materials $3, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3.

Prepare a flexible manufacturing budget for the relevant range value using 15,790 unit increments. (List variable costs before fixed costs.)
GUNDY COMPANY
Monthly Flexible Manufacturing Budget
For the Year 2012