$2,163,000 $185,400 488,220 258,000 931,620 $1,231,380 Sales (61,800 units) Cost of goods sold: Direct materials Direct labor Overhead (variable overhead applied at 40% of direct labor cost) Gross profit Selling expenses: Sales commissions (all variable) Rent (all fixed) Insurance (all short-term fixed) General expenses: Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) Operating income $168,096 58,000 48,000 101,000 86,000 68,000 529,096 702,284 $ Required: 1. During the year, the company manufactured and sold 56,800 units of product. Prepare a flexible budget for this level of output 2. Now suppose that the actual level of output was 66,800 units. Prepare a flexible budget for this output level