Budgeting plays a crucial role in managerial accounting, enabling businesses to plan and control their operations effectively. Variable costing provides a unique perspective when it comes to budgeting. Imagine advising a manufacturing company on implementing variable costing for budgeting purposes. Discuss the advantages of using variable costing in the budgeting process while considering how variable costing can help the company create flexible budgets based on different levels of production activity. How does this approach allow for better cost planning and variance analysis?