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Evanson Company expects to produce 520,000 units of their product during the year. Monthly production is expected to range from 40,000 to 80,000 units. The

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Evanson Company expects to produce 520,000 units of their product 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: $ 9 Direct materials Direct labor Variable manufacturing overhead Pixed manufacturing overhead Prepare a flexible manufacturing budget using 20,000 unit increments. Answer is complete but not entirely correct. 80,000 Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units 40,000 60,000 Variable costs Direct materials 360,000 $ 540,000 Direct labor 400,000 600,000 Overhead 440,000 660,000 Total variable costs $ 1,200,000 $ 1,800,000 Fixed costs Total fixed costs 1,200,000 1,800,000 Total costs $ 1,320,000 $ 1,980,000 $ 720,000 800,000 880,000 $ 2,400,000 2,400,000 $ 2,640,000

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