Master Budget 4,000 $53,200 $60,000 16,000 15,000 Actual Units 3,800 Sales revenue Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses 19,000 16,000 7,700 10,000 8,000 9,000 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 4 Required 2 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 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 Complete this question by entering your answers in the tabs below. 1 Required 1 Required 2 Required 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. Show less Flexible Flexible Master budget (b.) budget (a.) Budget Units 4,000 Sales 60,000 Variable costs: Manufacturing 16.000 Selling and administrative 8,000 0S Total variable costs 0 $ 24,000 0 $ 0 S 36,000 Contribution margin Fixed costs: Manufacturing 15,000 Selling and administrative 9,000 0 $ 0S Total fixed costs 24,000 0S S Operating income 0 S 12,000