Please help me to solve this problem Crane Corporation's master budget for the year is shown below:Sales (61,900 units)Cost of goods sold:Direct materialsDirect laborOverhead (variable overhead applied at 45% ofdirect labor cost)Gross profitSelling 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 incomeRequired 2SalesLess: Cost of goods sold:Direct materialsDirect laborRequired:1. During the year, the company manufactured and sold 56,900 units of product. Prepare a flexible budget for this level of output.2. Now suppose that the actual level of output was 66,900 units. Prepare a flexible budget for this output level.CRANE CORPORATIONFlexible BudgetManufacturing overhead:VariableFixedGross profitLess: Operating expenses:Selling expenses:Complete this question by entering your answers in the tabs below.Required 1During the year, the company manufactured and sold 56,900 units of product. Prepare a flexible budget for this level ofoutput. (Do not round intermediate calculations.)Sales commissionsRentInsuranceGeneral expenses:SalariesRentDepreciationOperating income$ 191,890495,200259,000$$ 168,36859,00049,000$101,50086,50069,000< Required 1$ 2,228,400946,090$ 1,282,31000533,368$ 748,94200Required 2 > Required 1 Required 2Now suppose that the actual level of output was 66,900 units. Prepare a flexible budget for this output level. (Do not roundintermediate calculations.)SalesLess: Cost of goods sold:Direct materialsDirect laborCRANE CORPORATIONFlexible BudgetManufacturing overhead:VariableFixedGross profitLess: Operating expenses:Selling expenses:Sales commissionsRentInsuranceGeneral expenses:SalariesRentDepreciationOperating income$$< Required 10000Required 2 >

The flexible budget is prepared based on the standard rate and actual units of production. The…

Crane Corporation's master budget for the year is shown below: Sales (61,900 units) Cost of goods sold: Direct materials Direct labor Overhead (variable overhead applied at 45% 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 $ 191,890 495,200 259,000 $ 168,368 59,000 49,000 101,500 86,500 69,000 $ 2,228,400 946,090 $ 1,282,310 533,368 $ 748,942 Required: 1. During the year, the company manufactured and sold 56.900 units of product. Prepare a flexible budget for this level of out 2. Now suppose that the actual level of output was 66,900 units. Prepare a flexible budget for this output level.