C TBM aw 2 Exercise 16-38 (Static) Flexible Budget (LO 16-2) 52 nts 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 liter of the preservative follows: Direct materials Direct labor (3 pounds @ $2) (0.25 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 rate (at the master budget level of activity) is $12 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 $336,000 favorable. Required: Prepare a flexible budget for Golden Food Products for the year. Note: Enter your answers in thousands of dollars. Sales revenue Variable costs: Direct labor Answer is not complete. GOLDEN FOOD PRODUCTS Flexible Budget (thousands of dollars) Direct materials Variable overhead Total variable costs Contribution margin Fixed costs: Fixed overhead Marketing Total fixed costs $ EA Operating profits EA $ EA $ 0 69 $ 0 0 0 < Prev 2 of 8 Next >