Hannon company

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