For 2015, a manufacturing company created the static budget shows below based on production of 5,000 products. The company expects that production may differ by an increase or decrease of 1,000 products. Prepare a flexible budget for the possible changes in production levels.

Variable cost; Direct labor $20,000, Direct materials 35,000, Total variable cost $55,000

Fixed Cost: Utilities $7,500 Salaries 9,000, Depreciation 3,100, Total fixed cost $19,600, Total department cost $74,600