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

	Actual	Master Budget
Units	3,900	4,000
Sales revenue	$ 60,400	$ 60,000
Variable manufacturing costs	20,400	16,000
Fixed manufacturing costs	14,200	13,300
Variable selling and administrative expenses	9,100	8,000
Fixed selling and administrative expenses	10,500	10,200

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. 3,890 units.

b. 4,290 units.

Complete this question by entering your answers in the tabs below. 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).) Complete this question by entering your answers in the tabs below. 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. 3,890 units. b. 4,290 units