Bonita Inc. $($AP$)$ is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a

flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at

production levels of $86,000,97,000,$ and $108,000$ units.

Variable costs

Manufacturing $$7$ per unit

Administrative $$4$ per unit

Selling $$2$ per unit

Fixed costs

Manufacturing $$130,000$

Administrative $$79,000$

$($a$)$

Prepare a flexible budget for each of the possible production levels: $86,000,97,000,$ and $108,000$ units. $($List variable costs before

fixed costs.$)$

BONITA INC.

Flexible Production Cost Budget

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