M9-5 (Algo) Preparing a Flexible Budget [LO 9-2] Evanson Company expects to produce 540,000 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 Variable manufacturing overhead Fixed manufacturing overhead Prepare a flexible manufacturing budget using 20,000 unit increments. ) Preparing a dget [LO 9-2] any expects to produce of their product during nly production is nge from 40,000 to The company has ufacturing costs per unit S: rials $14 r 15 nufacturing overhead 16 acturing overhead 3 ole manufacturing !0,000 unit increments. Prepare a flexible manufacturing budget using 20,000 unit increments. Evanson Compa Monthly Flexible Manufact Activity level Finished units 40,000 Variable costs Direct materials $ 640,000 Direct labor 680,000 Overhead Total variable costs Fixed costs Total fixed costs 720,000 $ 2,040,000 Total costs 120,000 $ 2,160,000 inson Company ble Manufacturing Budget 40,000 60,000 80,000 640,000 $ 960,000 $ 1,280,000 680,000 720,000 1,020,000 1,080,000 1,360,000 1,440,000 2,040,000 $ 3,060,000 $ 4,080,000 120,000 108,000 240,000 2,160,000 $ 3,240,000 $ 4,320,000