The following information is provided concerning the operations of Tolstoy Corporation for the current period:

There are no inventories.

Required:

Make a flexible budget for Tolstoy Corporation.

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Actual (based on actual of 360 units) Master Budget (based on budgeted 400 units) $55,200 S 60,000 Less Manufacturing costs Direct labor... Materials 8,520 7,200 4,920 3,180 3,000 $26,820 $28,380 9,000 8,400 6,000 3,600 3,000 $30,000 $30,000 ariable ove Marketing . . Administrative Total variable costs .. Contribution margin Fixed costs 2,916 6,240 5,976 $15,132 $13,248 3,000 6,000 6,000 $15,000 $15,000 Manufacturing. Marketing Administrative Total fixed costs. Operating profits. .i....-