For 20Y5, a manufacturing company created the following static budget based on

production of 5,000 products:

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 costs $74,600

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.