Answer:
17,000 units increments flexed budget
direct materials($5, × 17,000) 85,000
direct labor ($7 × 17,000) 119,000
overhead ($9 × 17,000) 153,000
fixed manufacturing costs - depreciation ($5 × 17,000) 85,000
fixed manufacturing costs - supervision ($3 × 17,000) 51,000
Total 493,000
Explanation:
A flexible budget matches the budgeted costs and revenues to the actual level of operation rather than the budgeted level of operation (master budget).