Crane Corporation's master budget for the year is shown below: Sales (60,800 units) Cost of goods sold: $ 2,371,200 $ 218,880 Direct materials Direct labor Overhead (variable overhead applied at 30% of direct labor cost) Gross profit Selling expenses: Rent (all fixed) General expenses: 504,640 248,000 971,520 $ 1,399,680 Sales commissions (all variable) $ 168,720 48,000 Insurance (all short-term fixed) 38,000 96,000 81,000 58,000 489,720 $ 909,960 Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) Operating income Required: 1. During the year, the company manufactured and sold 55,800 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,800 units. Prepare a flexible budget for this output level. Required 1 Required 2 During the year, the company manufactured and sold 55,800 units of product. Prepare a flexible budget for this level of output. (Do not round intermediate calculations.) CRANE CORPORATION Sales Less: Cost of goods sold: Direct materials Direct labor Manufacturing overhead: Variable Fixed Gross profit Less: Operating expenses: Selling expenses: Sales commissions Rent Insurance General expenses: Salaries Rent Depreciation Operating income Flexible Budget Required 1 Required 2 Now suppose that the actual level of output was 65,800 units. Prepare a flexible budget for this output level. (Do not round intermediate calculations.) CRANE CORPORATION Flexible Budget Sales Less: Cost of goods sold: Direct materials Direct labor Manufacturing overhead: Variable Fixed Gross profit Less: Operating expenses: Selling expenses: Sales commissions Rent Insurance General expenses: Salaries Rent Depreciation Operating income