Crane Corporation's master (static) budget for the year is shown below: $1,860,000 Sales (60,000 units) Cost of goods sold: $168,000 450, 000 Direct materials Direct labor Overhead (variable overhead applied at 40% of direct labor cost) 240,000 858,000 $1,002,000 Gross profit Selling expenses: $167,400 40,000 30,000 Sales commissions (all variable) Rent (all fixed) Insurance (all short-term fixed) General expenses: Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) 92,000 77,000 50,000 456, 400 S 545,600 Operating income Required 1. During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level of output 2. Now suppose that the actual level of output was 65,000 units. Prepare a flexible budget for this output level Requirec 1. During the year, the company manufactured and sold 55,000 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,000 units. Prepare a flexible budget for this output level Complete this question by entering your answers in the tabs below Required 1 Required 2 During the year, the company manufactured and sold 55,000 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 1 Required 2 Now suppose that the actual level of output was 65,000 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