Cost Accounting

The following information is available for Brownstone Products Company for the month of July:

	Actual			Master Budget
Units		3,900			3,200
Sales revenue		$54,700			$60,000
Variable manufacturing costs		10,700			16,000
Fixed manufacturing costs		12,600			13,400
Variable selling and administrative expenses		7,200			8,000
Fixed selling and administrative expenses		8,600			10,250

Required:

1)Compute the July sales volume variance and the flexible-budget variance for the month in terms of both contribution margin and operating income. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. )

2)Prepare pro forma budgets for activities within its relevant range of operations and prepare a flexible budget for each of the following two output levels:
	a. 3,900 units.
	b. 4,300 units.