The following information is available for Brownstone Products Company for the month of July: Master Budget Units Sales revenue Variable manufacturing costs Actual 3,900 3,200 $ 54,300 $ 60,000 10,500 16,000 Fixed manufacturing costs 12,400 13,000 Variable selling and administrative expenses Fixed selling and administrative expenses 7,000 10,200 8,000 10,050 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. 3,860 units. b. 4,260 units. What was the master budget variance for July? Was this variance favorable or unfavorable? (Indicate the effect of each variance by selecting "F" for Favorable, "U" for Unfavorable, and "None" for no effect (i.e., zero variance).) Master budget variance $ 12,500 F 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 $ 7,075 U $ 7,875 F Operating income $ 6,625 U $ 7,875 F 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. 3,860 units. b. 4,260 units. Units Flexible budget Flexible budget Master Budget (a.) (b.) 3,860 4,260 3,200 $ 53,743 $ 59,312 $ 60,000 Sales Variable costs: Manufacturing 10,392 11,469 16,000 Selling and administrative 6,928 10,650 8,000 Total variable costs $ 17,320 $ 22,119 $ 24,000 Contribution margin $ 36,423 $ 37,193 $ 36,000 Fixed costs: Manufacturing 12,400 400 13,000 Selling and administrative 10,200 400 10,050 Total fixed costs $ 22,600 $ 800 $ 23,050 Operating income $ 13,823 $ 36,393 $ 12,950 Show less