Problem
Sheridan Company expects to produce 1,200,000 units of product XX in 2022. Monthly production is expected to range from 84,700 to 116,900 units. Budgeted variable manufacturing costs per unit are as follows: direct materials $5, direct labour $7, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision $3.
In March 2022, the company incurs the following costs in producing 100,800 units: direct materials $526,000, direct labour $698,600, and variable overhead $916,200. Actual fixed overhead equalled budgeted fixed overhead.
Make a flexible budget report for March.