M9-5 (Static) Preparing a Flexible Budget [LO 9-2] Evanson Company expects to produce 500,000 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 $4 563 Prepare a flexible manufacturing budget using 20,000 unit increments. Answer is complete but not entirely correct. Evanson Company Monthly Flexible Manufacturing Budget Activity level Finished units 40,000 60,000 80,000 Variable costs Direct materials $ 160,000 240,000 320,000 Direct labor 200,000 300,000 400,000 Overhead 240,000 360,000 480,000 Total variable costs S 600,000 900,000 $ 1,200,000 Fixed costs Total fixed costs 120,000 120,000 120,000 x Total costs S 720,000 1,020,000 $ 1,320,000