Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 132,000 liters at a budgeted price of $315 per liter this year. The standard direct cost sheet for one liter of the preservative follows Direct materials Direct labor (2 pounds @ $20) (0.5 hours @ $56) $40 28 Variable overhead is applied based on direct labor hours. The variable overhead rate is $180 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $90 per unit. All non-manufacturing costs are fixed and are budgeted at $2.8 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $942,000 unfavorable. Required Prepare a flexible budget for Paynesville for the year. (Enter your answers in thousands of dollars.) PAYNESVILLE CORPORATION Flexible Budget (thousands of dollars) Sales revenue Variable costs: Materials Direct labor Variable overhead Total variable costs Fixed costs: Manufacturing overhead Non-manufacturing $ Total fixed costs Operating profits