Crane Corporation's master (static) budget for the year is shown below: Sales (60,800 units) Cost of goods sold: $2,371,200 Direct materials $218,880 Direct labor 504,640 Overhead (variable overhead applied at 30% of direct labor cost) Gross profit Selling expenses: Sales commissions (all variable) Rent (all fixed) Insurance (all short-term fixed) General expenses: 971,520 $1,399,680 248,000 $168,720 48,000 38,000 Salaries (all short-term fixed) Rent (all short -term fixed) Depreciation (all short-term fixed) 96,000 81,000 58,000 489,720 $ 909,960 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 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 Required 2