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Prepare a flexible manufacturing budget for relevant range

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Reference no: EM131779990

Exercise

Gundy Company expects to produce 1,310,400 units of Product XX in 2017. Monthly production is expected to range from 82,900 to 112,900 units. Budgeted variable manufacturing costs per unit are direct materials $4, direct labor $8, and overhead $11. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2.

Prepare a flexible manufacturing budget for the relevant range value using 15,000 unit increments. (List variable costs before fixed costs.)

Reference no: EM131779990

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