Storage Products manufactures two models of DVD storage cases: regular and deluxe. Presented is standard cost information for each model:

Cost Components

Regular

Deluxe

Direct materials

Lumber

2 board feet x $ 3 =

$ 6.00

3 board feet x $ 3 =

$ 9.00

Assembly kit

=

2.00

=

2.00

Direct labor

1 hour x $ 4 =

4.00

1.25 hours x $ 4 =

5.00

Variable overhead

1 labor hr. x $ 2 =

2.00

1.25 labor hrs. x $ 2 =

2.50

Total

$ 14.00

$ 18.50

Budgeted fixed manufacturing overhead is $15,000 per month. During July, the company produced 5,000 regular and 3,000 deluxe storage cases while incurring the following manufacturing costs:

Direct materials

$ 80,000

Direct labor

36,000

Variable overhead

14,000

Fixed overhead

17,500

Total

$ 147,500

not sure how to prepare a flexible budget for this equation..