Crane Corporation$$s master budget for the year is shown below:

Sales $(61,300$ units$)$ $ $1,655,100$

Cost of goods sold:

Direct materials $ $153,250$

Direct labor $441,360$

Overhead $($variable overhead applied at $45\%$ of direct labor cost$)253,000847,610$

Gross profit $ $807,490$

Selling expenses:

Sales commissions $($all variable$)$ $ $165,510$

Rent $($all fixed$)53,000$

Insurance $($all short$-$term fixed$)43,000$

General expenses:

Salaries $($all short$-$term fixed$)98,500$

Rent $($all short$-$term fixed$)83,500$

Depreciation $($all short$-$term fixed$)63,000506,510$

Operating income $ $300,980$

Required:

$1.$ During the year, the company manufactured and sold $56,300$ units of product. Prepare a flexible budget for this level of output.

$2.$ Now suppose that the actual level of output was $66,300$ units. Prepare a flexible budget for this output level.