Evanson Company expects to produce 548,000 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: Direct materials Direct labor Fixed manufacturing overhead $16 17 Variable manufacturing overhead 18 3 Prepare a flexible manufacturing budget using 20,000 unit increments. Answer is complete but not entirely correct. Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units 40,000 60,000 80,000 Variable costs Direct materials $ 640,000 $ 960,000 Direct labor 680,000 Overhead 720,000 Total variable costs $ 2,040,000 $ 3,060,000 Fixed costs Total fixed costs Total costs 120,000 $ 2,160,000 1,020,000 1,080,000 180,000 $ 3,240,000 $ 1,280,000 1,360,000 1,440,000 $ 4,080,000 240,000 $ 4,320,000