Problem:
Gundy Company expects to produce 1,275,240 units of Product XX in 2012. Monthly production is expected to range from 79,150 to 109,850 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $8, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $4 and for supervision are $2.
Required:
Question: Prepare a flexible manufacturing budget for the relevant range value using 15,350 unit increment?
Note: Please provide reasons to support your answer.