Exercise $16-38($Static$)$ Flexible Budget $($LO $16-2)$

Golden Food Products produces special$-$formula pet food. The company carries no inventories. The master budget calls for the

company to manufacture and sell $120,000$ cases at a budgeted price of $$60$ per case this year. The standard direct cost sheet for one

iter of the preservative follows:

Direct materials

Direct labor

$(3$ pounds@$$2)$

hours@$$32)$

$$6$

$8$

Variable overhead is applied based on direct labor$-$hours. The variable overhead rate is $$16$ per direct labor$-$hour. The fixed overhead

cate $($at the master budget level of activity$)$ is $$12$ per unit. All nonmanufacturing costs are fixed and are budgeted at $$2\mathrm{.}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 $$336,000$ favorable.

Required:

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

Note: Enter your answers in thousands of dollars.