Prepare Flexible Budget: The following information is provided concerning the operations of the 47th Street Company for the current period:

There are no inventories.

Required: Prepare a flexible budget for the 47th Street Company.

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Actual (based on actual of 90 units) $9,200 Master Budget (based on budgeted 100 units) Sales revenue $10,000 Less: Manufacturing costs: Direct labor 1,420 1,500 Materials 1,200 1,400 Variable overhead 820 1,000 Marketing 530 600 Administrative 500 500 Total variable costs 4,470 5,000 Contribution margin 4,730 5,000 Less: Fixed costs: Manufacturing 485 500 Marketing 1.040 1,000 Administrative 995 1,000 Total fixed costs 2,520 2,500 Operating profits $2,210 $ 2,500