Garcia and Buffet, a local CPA firm, has budgeted 100 000 in fixed expenses per month for the tax department. It has also budgeted variable cost of 5 dollar per tax return prepared for supplies, 35 dollar per return for labour and 10 dollar per return for computer time. The firm expects revenue from tax return preparation to be 300 000, based on 2000 tax returns at 150 dollar each. During the current month, 1850 tax returns were actually prepared, at an average fee of 147 dollar each. Actual variable costs were 9100 dollar for supplies, 65 000 dollar for labour, and 18 000 for computer time. Actual fixed costs were 100 000 dollar.

Required

Prepare a flexible budget for the tax department of Garcia and Buffet for the current month.