Crane Corporations master budget for the year is shown below:

Sales (60,300 units)		$ 2,050,200
Cost of goods sold:
Direct materials	$ 186,930
Direct labor	470,340
Overhead (variable overhead applied at 40% of direct labor cost)	243,000	900,270
Gross profit		$ 1,149,930
Selling expenses:
Sales commissions (all variable)	$ 167,634
Rent (all fixed)	43,000
Insurance (all short-term fixed)	33,000
General expenses:
Salaries (all short-term fixed)	93,500
Rent (all short-term fixed)	78,500
Depreciation (all short-term fixed)	53,000	468,634
Operating income		$ 681,296

Required:

1. During the year, the company manufactured and sold 55,300 units of product. Prepare a flexible budget for this level of output.

2. Now suppose that the actual level of output was 65,300 units. Prepare a flexible budget for this output level.