According to its original plan, Fanning Consulting Services Company plans to charge its customers for service at $133 per hour in 2018. The company president expects consulting services provided to customers to reach 47,000 hours at that rate. The marketing manager, however, argues that actual results may range from 40,000 hours to 54,000 hours because of market uncertainty. Fanning's standard variable cost is $42 per hour, and its standard fixed cost is $1,340,000.

Required

	Flexible Budget 40,000 Hours	Flexible Budget 47,000 Hours	Flexible Budget 54,000 Hours

Develop flexible budgets based on the assumptions of service levels at 40,000 hours, 47,000 hours, and 54,000 hours.