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

Sales $(61,900$ units$)$ $ $2,228,400$

Cost of goods sold:

Direct materials $ $191,890$

Direct labor $495,200$

Overhead $($variable overhead applied at $45\%$ of direct labor cost$)259,000946,090$

Gross profit $ $1,282,310$

Selling expenses:

Sales commissions $($all variable$)$ $ $168,368$

Rent $($all fixed$)59,000$

Insurance $($all short$-$term fixed$)49,000$

General expenses:

Salaries $($all short$-$term fixed$)101,500$

Rent $($all short$-$term fixed$)86,500$

Depreciation $($all short$-$term fixed$)69,000533,368$

Operating income $ $748,942$

Required:

$1.$ During the year, the company manufactured and sold $56,900$ units of product. Prepare a flexible budget for this level of output.

$2.$ Now suppose that the actual level of output was $66,900$ units. Prepare a flexible budget for this output level.