Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.

To prepare a flexible budget at activity levels of 14,000 units and 18,000 units, you need to follow these steps:

1. Identify the Fixed and Variable Costs: Fixed costs are those that do not change with the level of production, such as rent or salaries. Variable costs are those that change with the level of production, such as raw materials or direct labor.

2. Calculate the Total Fixed Costs: Add up all the fixed costs.

3. Calculate the Variable Cost per Unit: This is done by dividing the total variable costs by the number of units produced.

4. Prepare the Flexible Budget: For each activity level, multiply the variable cost per unit by the number of units. Then, add the total fixed costs. This will give you the total cost for each activity level.

For example, if the fixed costs are $10,000, and the variable cost per unit is$5:

• For 14,000 units: (14,000 units * $5/unit) +$10,000 = $80,000
• For 18,000 units: (18,000 units * $5/unit) +$10,000 = $100,000

So, the flexible budget for 14,000 units is $80,000 and for 18,000 units is$100,000.

Remember, this is a simplified example. In reality, you would have multiple types of variable and fixed costs to consider.