Evanson Company expects to produce 548,000 units during the year. Monthly production is expected to...

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Accounting

Evanson Company expects to produce 548,000 units 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 $ 16

Direct labor 17

Variable manufacturing overhead 18

Fixed manufacturing overhead 3

Direct materials	$ 16
Direct labor	17
Variable manufacturing overhead	18
Fixed manufacturing overhead	3

Required:

Prepare a flexible manufacturing budget using 20,000 unit increments.

\begin{tabular}{|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Evanson Company } \\ \hline Activity level & & & \\ \hline Finished units & & & \\ \hline Variable costs & & & \\ \hline Direct materials & & & \\ \hline Direct labor & & & \\ \hline Overhead & & & \\ \hline Total variable costs & & \\ \hline Fixed costs & & \\ \hline Total fixed costs & & \\ \hline Total costs \end{tabular}

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