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Evanson Company expects to produce 548,000 units during the year. Monthly production is expected to...

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Accounting

Evanson Company expects to produce 548,000 units during the year. Monthly production is expected to range from 40,000 to 80,000 units. The company has budgeted manufacturing costs per unit to be as follows:

Direct materials $ 16
Direct labor 17
Variable manufacturing overhead 18
Fixed manufacturing overhead 3

Required:

Prepare a flexible manufacturing budget using 20,000 unit increments.

image

\begin{tabular}{|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Evanson Company } \\ \hline Activity level & & & \\ \hline Finished units & & & \\ \hline Variable costs & & & \\ \hline Direct materials & & & \\ \hline Direct labor & & & \\ \hline Overhead & & & \\ \hline Total variable costs & & \\ \hline Fixed costs & & \\ \hline Total fixed costs & & \\ \hline Total costs \end{tabular}
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