nexible budgeting At the beginning of the period, the Grinding Department budgeted direct labor of $157,500 and property tax of $46,000 for 7,500 hours of production. The department actually completed 9,500 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting. 242,650 X Feedback Check My Work Remember that a flexible budget is constructed by first identifying the relevant activity levels, secondly identifying the fixed and variable cost components of the costs being budgeted, and then preparing the budget for each activity level.