Crane Corporation's master (static) budget for the year is shown below: $2,178,000 $199,650 484,000 245,000 928,650 $1,249,350 Sales (60,500 units) Cost of goods sold: Direct materials Direct labor 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: Salaries (all short-term fixed) Rent (all short-term fixed) Depreciation (all short-term fixed) Operating income $ 161,656 45,000 35,000 94,500 79,500 55,000 470,656 778, 694 $ Required: 1. During the year, the company manufactured and sold 55,500 units of product. Prepare a flexible budget for this level of output. 2. Now suppose that the actual level of output was 65,500 units. Prepare a flexible budget for this output level. Required 1 Required 2 During the year, the company manufactured and sold 55,500 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 65,500 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