Data for Shillong Electronics are given in BE25.4. In March 2020, the company incurs the following costs in producing 100,000 units: direct materials £520,000, direct labor £596,000, and variable overhead £805,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. Were costs controlled?

BE25.4:

Shillong Electronics expects to produce 1,200,000 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 120,000 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. Prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments.