Golden Food Products produces special

$-$

formula pet food. The company carries no inventories. The master budget calls for the company to manufacture and sell

$1$

$2$

$0$

$,$

$0$

$0$

$0$

$$cases at a budgeted price of $

$6$

$0$

$$per case this year. The standard direct cost sheet for one liter of the preservative follows:

Direct materials

$($

$3$

$$pounds @ $

$2$

$)$

$$$

$6$

Direct labor

$($

$0$

$.$

$2$

$5$

$$hours @ $

$3$

$2$

$)$

$8$

Variable overhead is applied based on direct labor

$-$

hours. The variable overhead rate is $

$1$

$6$

$$per direct labor

$-$

hour. The fixed overhead rate

$($

at the master budget level of activity

$)$

$$is $

$1$

$2$

$$per unit. All nonmanufacturing costs are fixed and are budgeted at $

$2$

$.$

$2$

$$million for the coming year.

At the end of the year, the costs analyst reported that the sales activity variance for the year was $

$3$

$3$

$6$

$,$

$0$

$0$

$0$

$$favorable$.$

Required:

Prepare a flexible budget for Golden Food Products for the year.