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

Actual Master Budget

Units $3,6004,000$

Sales revenue $ $53,400$ $ $60,000$

Variable manufacturing costs $19,20016,000$

Fixed manufacturing costs $14,10013,100$

Variable selling and administrative expenses $7,9008,000$

Fixed selling and administrative expenses $9,3009,200$

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$.3,770$ units.

b$.4,170$ units.