Exercise 14-23 (Algo) Flexible Budgets; Master Budget Variance; Breakdown of the Master Budget Varlance; Spreadsheet Application [LO 14-1, 14-2, 14-3] The following information is available for Brownstone Products Company for the month of July: Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Actual 3,800 $ 60,600 21,600 14,600 9,700 11,100 Master Budget 4.ee $ 60, eee 16,800 13,900 8, eee 10,500 Required: 1. What was the master budget variance for July? Was this variance favorable or unfavorable? 2 Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. 4. Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: a. 3.950 units. b. 4,350 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 What was the master budget variance for July? Was this variance favorable or unfavorable? (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavorable, and "None" for no effect (i.e., zero variance).) Master budget variance Exercise 14-23 (Algo) Flexible Budgets; Master Budget Variance; Breakdown of the Master Budget Varlance; Spreadsheet Application [LO 14-1, 14-2, 14-3] The following information is available for Brownstone Products Company for the month of July: Master Actual Budget Units 3,880 4.ee Sales revenue $ 60,600 $ 60,000 Variable manufacturing costs 21,800 16,000 Fixed manufacturing costs 14,000 13,990 Variable selling and administrative expenses 9,700 8,800 Fixed selling and administrative expenses 11,100 10,500 Required: 1. What was the master budget variance for July? Was this variance favorable or unfavorable? 2 Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of operating income. 4. Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels: a. 3.950 units. b.4.350 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Compute the July sales volume variance and the flexible-budget variance for the month, both in terms of contribution margin and in terms of 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).) Flexible-Budget Sales Volume Variance Variance Contribution margin Operating income Exercise 14-23 (Algo) Flexible Budgets: Master Budget Varlance: Breakdown of the Master Budget Varlance: Spreadsheet Application [LO 14-1, 14-2, 14-3] The following information is available for Brownstone Products Company for the month of July Master Actual Budget 3.saa Sales revenue $ 5e,se $ 6,8 Variable manufacturing costs 21, cea 16.00 Fixed manufacturing costs 14, 13.900 Variable selling and administrative expenses 9,730 R. Fixed selling and adninistrative pense 11.300 10,500 Required: 1. What was the master budget variance for July Was this variance fsvorsble or unfavorable 2 Compute the July sales volume variance and the fledble-budget variance for the month, both in terms of contribution margin and in terms of operating Income 4. Prepare pro-forms budgets for activities within its relevant range of operations. Prepare a flexible budget for each of the following two output levels 3.950 units. b. 4.350 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Prepare pro-forma budgets for activities within its relevant range of operations. Prepare a fiexible budget for each of the following two output levels: a. 3,950 units. b. 4,350 units Show less Flexible budget Flexible budget 2.) (...) Master Budget Units 4,000 Sales $ 60,000 Variable costs Manufacturing 16,000 Selling and administrative 8,000 Total variable costs S 24,000 Contribution margin 5 36,000 Found costs Manufacturing 13,900 Selling and administrative 10,500 Total costs s 24,400 Operating income 5 11,000
