Balmer Corporation's master budget for the year is presented below: Sales (50,000 units) $ 1,600,000 Cost of goods sold: Direct materials $ 150,000 Direct labor 450,000 Overhead (Variable overhead applied at 40% of direct labor cost) 240,000 840,000 Gross profit $ 760,000 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) 51,000 450,000 Operating income $ 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.