Dagmar Company budgeted the following amounts: Variable costs of production: Direct materials ....... 3 pounds @ 0.80

Question:

Dagmar Company budgeted the following amounts:
Variable costs of production:
Direct materials ....... 3 pounds @ 0.80 per pound
Direct labor ........ 0.5 hr. @ $12.00 per hour
Variable overhead ...... 0.5 hr. @ $1.50
Fixed overhead:
Materials handling ..... $6,200
Depreciation ......... $2,600

Required:
Prepare a flexible budget for 2,500 units, 3,000 units, and 3,500 units.