Exercise 14-23 Flexible Budgets; Total Operating Income Variance; Breakdown of the Total Operating- Income Variance; Spreadsheet Application (LO 14-1, 14-2, 14-3] The following information is available for Brownstone Products Company for the month of July: 4,000 Units Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Master Actual Budget 3,700 $54,100 $60,000 10,400 16,000 12,300 13,800 6,900 8,000 8,400 9,900 Required: 1. What was the total operating income variance for July? (Note: this variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable (U)? 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 a flexible budget for each of the following two output levels: a. 3,840 units. b. 4,240 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 What was the total operating income variance for July? (Note: this variance is also called the master (static) budget variance for the period.) Was this variance favorable (F) or unfavorable (U)? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Total operating income variance Required 1 Required 2 > 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 Variance Sales Volume Variance Contribution margin Operating income Required 1 Required 2 Required 4 Prepare a flexible budget for each of the following two output levels: a. 3,840 units. b. 4,240 units. Flexible budget (a.) Flexible budget (b.) Units Master Budget 4,000 $ 60,000 Sales Variable costs: 16,000 8,000 Manufacturing Selling and administrative Total variable costs Contribution margin $ 24,000 36,000 $ Fixed costs: Manufacturing Selling and administrative 13,800 9,900 23,700 12,300 Total fixed costs $ $ Operating income