Monty Company expects to produce 1,176,000 units of Product XX in 2027. Monthly production is expected to range
from 78,400 to 117,600 units. Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead
$8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
In March 2027, the company incurs the following costs in producing 98,000 units: direct materials $509,600, direct labor $584,080,
and variable overhead $788,900. Actual fixed costs were equal to budgeted fixed costs.
Prepare a flexible budget report for March. (List variable costs before fixed costs.)
MONTY COMPANY
Manufacturing Flexible Budget Report
Budget
Actual
Were costs controlled?
$
$
$
$
Difference
Favorable
Unfavorable
Neither Favorable
nor Unfavorable
>
>
>
>
>
>
<