Exercise 11-7 Preparing Flexible Budgets (L02 - CC12) ToasToe Inc. (TI) is a manufacturer of heating elements for toaster ovens. To improve control over operations, the president install a flexible budgeting system, rather than the single master budget being used at present. The following data are avail expected costs for production. The relevant range of production levels for fixed overhead costs is 80,000 to 180,000 units: Variable costs: Manufacturing Administrative Selling Fixed costs: Manufacturing Administrative $9.25/unit $6.25/unit $4.25/unit $ $ 194,900 112,500 Required: Prepare a flexible budget for each of the three possible sales levels: 116,000, 126,000, and 136,000 units. Each toaster oven expected to sell for $22.40. TOASTTOE INC. Flexible Budget Cost Formula (per toaster) Activity (toasters) 126,000 116,000 136,000 Variable costs Manufacturing Administrative Selling