Generating a Flexible Budget; Spreadsheet Application Crane Corporation’s master (static)...

Generating a Flexible Budget; Spreadsheet Application Crane Corporation’s master (static) budget for the year is shown below:

Required

1. During the year the company manufactured and sold 55,000 units of product. Prepare an Excel spreadsheet that contains a flexible budget for this level of output.

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2. Now suppose, that the actual level of output was 65,000 units. Rerun your spreadsheet to generate a flexible budget for this level of output.

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3. Of what relevance is the notion of “relevant range” when preparing pro forma budgets or a flexible budget for control purposes?