Answer:
Gundy Company
Flexible Budget Report for March 2020:
                                       Actual Budget   Flexible Budget   Variance
Direct materials                 $515,000        $485,000           $30,000  U
Direct labor                         670,000           679,000               9,000  F
Variable overhead           1,073,000         1,067,000               6,000  U
Actual fixed costs              679,000           679,000                       0  None
Total costs incurred    $2,937,000       $2,910,000           $27,000  U
Explanation:
a) Data and Calculations:
Expected production of Product XX in 2020 = 1,213,200 units
Monthly production range = 80,000 to 114,000 units
Budgeted variable manufacturing costs per unit are: 
Direct materials      $5
Direct labor             $7 
Overhead              $11
Total variable       $23
Fixed manufacturing costs per unit:
Depreciation are   $6
Supervision are     $1
Total fixed costs   $7
Total costs =       $30
March 2020 costs incurred for 97,000 units:
Direct materials        $515,000
Direct labor              $670,000
Variable overhead $1,073,000
Actual fixed costs      679,000
Total costs incurred $2,937,000
Flexible Budget Report for March 2020:
                                       Actual Budget   Flexible Budget   Variance
Direct materials                 $515,000        $485,000           $30,000  U
Direct labor                         670,000           679,000               9,000  F
Variable overhead           1,073,000         1,067,000               6,000  U
Actual fixed costs              679,000           679,000                       0  None
Total costs incurred    $2,937,000       $2,910,000           $27,000  U