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

Actual Master Budget

Units $3,8004,000$

Sales revenue $ $53,200$ $ $60,000$

Variable manufacturing costs $19,00016,000$

Fixed manufacturing costs $16,00015,000$

Variable selling and administrative expenses $7,7008,000$

Fixed selling and administrative expenses $10,0009,000$

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$.3,750$ units.

b$.4,150$ units.