Gundy Company expects to produce 1,220,400 units of Product XX in 2020. Monthly production is expected to range from 73,000 to 115,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $5 and for supervision are $3. In March 2020, the company incurs the following costs in producing 94,000 units: direct materials $400,000, direct labor $652,000, and variable overhead $850,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)

A flexible budget report compares the actual results of a particular period to the budgeted results. In this case, the actual production costs to the budgeted production costs in March 2020. This is calculated by finding the difference between the budgeted cost and the actual cost for every variable as well as fixed cost incurred. When the actual cost is higher than the budgeted cost, the variance is unfavorable and when the actual cost is lower than the budgeted cost, the variance is favorable. Please refer attached table for the flexible budget as well as calculations.