Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in itsbudgets and performance reports.

Nasson Corporation manufactures and sells a single product. The company uses units as the measure of activity in itsbudgets and performance reports. During August, the company budgeted for 6,700 units, but its actual level of activitywas 6,730 units. The company has provided the following data concerning the formulas used in its budgeting and itsactual results for August:Data used in budgeting: Fixed Variableelement elementper month per monthRevenue .......................................................................... $0.00 $29.10Direct labor...................................................................... $0.00 $3.60Direct material .................................................................. 0.00 10.60Manufacturing overhead ......................................... 47,000.00 1.20Selling and administrative expenses........................ 21,500.00 0.80Total expenses........................................................ $68,500.00 $16.20Actual results for August:Revenue ............................................................... $201,053Direct labor............................................................... 24,698Direct material ......................................................... 72,588Manufacturing overhead ......................................... 55,606Selling and administrative expenses........................ 25,5541. The direct materials in the flexible budget for August would be closest to:A. $71,020B. $71,338C. $72,913D. $72,2642. The manufacturing overhead in the flexible budget for August would be closest to:A. $55,358B. $55,855C. $55,076D. $55,0403. The net operating income in the flexible budget for August would be closest to:A. $22,506B. $18,317C. $17,930D. $22,708