1 McElroy Company has prepared the following master budget for 2021. Although McElroy has the capacity to manufacture 50,000 units, management expected the likely demand for its product to be 40,000 units in 2021; as such, it prepared the master budget to manufacture and sell 40,000 units. In early January 2022, the company was pleasantly surprised to find out that it manufactured and sold 45,000 units in 2021. 34 points Skipped $ 2,800,000 eBook References McElroy Company Master (Static) Budget For Year Ending December 31, 2021 Sales (40,000 units) Cost of Goods Sold: Direct materials $ 800,000 Direct labor 300,000 Indirect materials (variable) 24,000 Indirect labor (variable) 36,000 Depreciation 300,000 Salaries 200,000 Utilities (80% fixed) 100,000 Maintenance (40% variable) 50,000 Gross profit Operating expenses: Commissions (5% of sales) $ 140,000 Advertising (fixed) 150,000 Wages (variable) 100,000 Rent (fixed) 50,000 Total operating expenses Operating Income 1,810,000 $ 990,000 440,000 $ 550,000 Required: Prepare the flexible budget (FB) for the actual operating level achieved in 2021