Balmer Corporation's master budget for the year is presented below: $1,600,000 840,000 $760,000 Sales (50,000 units) Cost of goods sold: $ 150,000 Direct materials 450,000 Direct labor 240,000 overhead (Variable overhead applied at 40% of direct labor cost) Gross profit Selling expenses: Sales commissions (all variable) $160,000 Rent (all fixed) 40,000 Insurance (all fixed) 30,000 General expenses : Salaries (all fixed) 92,000 Rent (all fixed) 77,000 Depreciation (all fixed) 51,000 Operating income 450,000 310,000 $ During the period, the company manufactured and sold 42,000 units. Required: 1. Prepare a flexible budget (FB) for the actual output level achieved during the period; state each item at nearest whole dollar. 2. What is the definition of a FB? For what managerial purpose is a FB useful? Be specific about the types of information (and variances) that management can generate, at the end of an accounting period, given a flexible budget and its master (static) budget