Exercise 22-7 Kitchen Help Inc. (KHI) is a manufacturer of toaster ovens. To improve control over operations, the president of KHI wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for KHI's expected costs at production levels of 86,000, 98,000, and 110,000 units. Variable costs Manufacturing Administrative Selling $6 per unit $4 per unit $1 per unit Fixed costs Manufacturing Administrative $144,000 $85,000 Prepare a flexible budget for each of the possible production levels: 86,000, 98,000, and 110,000 units. (List variable costs before fixed costs.) KITCHEN HELP INC. Flexible Production Cost Budget