Answer:
                              Gundy Company
              Manufacturing Flexible Budget Report
              For the Month Ended March 31, 2020
                                    Budget                Actual
Units produced         107,000               107,000  
Variable Costs:
Direct Materials        $428,000            $455,000      $27,000 U
                                  ($4 * 107,000)
Direct labor               $749,000             $746,000      $3,000 F
                                   ($7 * 107,000)
Overhead                   $963,000            $971,000      $8,000 U
                                   ($9 ×* 107,000)
Total variable costs  $2,140,000          $2,172,000  $32,000 U
Fixed Costs:
Depreciation                $434,800           $434,800     $0
Supervision                  $108,700            $108,700      $0
Total fixed costs          $543,500          $543,500     $0
Total costs                   $2,683,500         $2,715,500    $32,000 U
Workings: 
Depreciation = (1,304,400 * $4) / 12 = $5,217,600 / 12 = $434,800
Supervision = (1,304,400 * $1) / 12 = $1,304,400 / 12  = $108,700