Jarend Company provided information on the following four overhead activities.

Jarend has found that the following driver levels are associated with two different levels of production.

Required:
Prepare an activity-based flexible budget for 40,000 units and 60,000 units.

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Activity Maintenance Machining Setting up Purchasing Fixed Cost Variable Rate Driver Machine hours Machine hours Setups $ 1.80 3.00 2,100 7.00 $50,000 25,000 Purchase Orders 75,000 Driver Machine hours Setups Purchase orders 40,000 units 60,000 12,000 60,000 units 90,000 18,000 50 70