Hannon company expects to produce 1,200,000 units of product xx in 2008 monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing cost per unit are: direct material $4 direct labor $6 and overhead $8. Budgeted fixed manufacturing cost 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 increment Use data given above in march 2008 the company incurs the following cost in production , 100,000 units direct materials $ 425,000 direct labor $ 590,000 and variable overhead $ 805, 000. Prepare a flexible budget report for march. Were cost controlled
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