Data for Dukane Company are given in BE11-4. In March 2012, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labour $590,000, and variable overhead $805,000. Prepare a flexible budget report for March. Were costs controlled?
In BE11-4
Dukane Company expects to produce 1.2 million units of product XX in 2012. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $4, direct labour $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision $1. Prepare a flexible manufacturing budget for the relevant range value using increments of 20,000 units.